TV advertising is a powerful way to reach an audience and build brand recognition, but it can be confusing if you are new to the industry. As you begin, it is critical to understand the familiar advertising terms, what they mean, and how they impact your campaign. Here are 31 TV advertising terms you need to know in one convenient guide.
TV Advertising Terms To Know
The following TV advertising terminology is used commonly in planning campaigns.
1. Addressable TV
Addressable TV is when viewers in different households experience different ads while watching the same program.
2. Advanced TV
Any form of television that is not watched via traditional mediums like cable, satellite, or broadcast on a TV, such as TV Everywhere, video on demand, connected TV, and programmatic TV, is considered advanced TV.
Television attribution is the way credit is allocated for exposures that drive sales. It provides a fine-grained analysis of the effectiveness of TV advertising.
4. Audience Composition
This term refers to the demographics of a viewing audience, like age or gender.
5. Call To Action (CTA)
The CTA is the prompt for the viewer to take action, such as looking up a product on their website.
6. Click-Through Rate
The click-through rate is computed by the number of clicks a user makes on your ad divided by the number of times the ad is shown.
7. Competitive Analysis
Competitive analysis helps to understand your competitors' strengths and weaknesses and glean information on what is effective in their advertising strategies so that you can leverage them in yours.
8. Connected TV
Any TV connected to the internet, whether a Smart TV or traditional televisions connected via a smart device, is considered a connected TV.
In TV advertising terms, conversion happens when a viewer takes action after responding to the CTA, such as purchasing a product or installing an application.
Cost per thousand or cost per mille is the price for 1,000 impressions. In TV advertising, it helps determine the effectiveness of the campaign.
A measure of cost-efficacy, Cost Per Point is the total ad spend on a television station divided by the number of gross rating points.
12. Designated Market Area
Also called media market, it denotes a region of the United States that defines television and radio markets, such as a metropolitan area.
13. Display Ad
A display ad is simply a visual advertisement of a product or service through images or videos
Engagement refers to the connection to the audience that ultimately impacts the brand.
Frequency is a measure of impressions or the average times a viewer sees a single ad.
Gross Rating Points or GRPs, pronounced like grips, are how advertising impact is measured. Each GRP represents reaching 1% of the total potential audience with a single ad.
Impressions represent the total number of exposures of a single viewer to your TV advertising.
18. Integrated Segments
Integrated segments occur when advertisers combine different marketing segments by user preferences or behavior.
A keyword is one or multiple words forming a phrase that a user types into a search engine to find a business, service, or product.
KPI is an acronym for Key Performance Indicator, a measure of success toward a business goal.
Over The Top is a term that denotes a streaming service such as Netflix that goes over the top of existing cable services to deliver specific television content at the request of viewers.
22. Pre-Roll Video
A pre-roll video is an advertisement that runs before the video that the user has selected to play.
23. Product Placement
Product placement is when advertisers pay to embed brands in a television show or movie scene for promotional purposes.
24. Programmatic Media Buying
Data-driven technology automated ad purchasing for TV content is called programmatic media buying.
The total number of people who will see your TV ad or content constitutes your reach.
Retargeting allows you to show ads to a consumer after they've left your site, even when visiting other sites.
Return On Ad Spend measures the revenue your business earns for every dollar spent on marketing or advertising.
Return On Investment measures the effectiveness of your TV ad campaign by taking the net revenue from your ads divided by your overall costs.
Dividing your target audience into needs, interests, demographics, or location is segmentation.
Search Engine Optimization occurs when you have increased the volume and quality of traffic to your website through organic search results.
31. Spot Lengths
Spot length is the run time of the ad.
Navigating the World of TV Advertising
Congratulations! You are now ready to navigate the world of TV advertising with your understanding of some of the more common terms and acronyms. Leverage our quick guide any time you need a reminder.