Despite what many marketers have said and may think, broadcast TV is far from dead. In fact, it's still an essential component of advertising today, especially when integrated into your marketing mix with other successful strategies. The benefits of advertising on TV are still powerful. Viewers spend more time on TV than on any other platform, and it has the largest reach. Digital and TV also work well together. In addition to local advertising opportunities, you can reach the station's loyal audience. Let’s explore more reasons why you should be advertising on TV this year.
22 Reasons You Should Be Advertising on TV in 2022
- TV ranks as the second most profitable advertising medium behind the internet and accounts for approximately 25% of total U.S. media ad revenue. (Statista) Despite there being numerous marketing channels to take advantage of, TV remains among the most effective and popular advertising channels among marketers.
- TV ad spend in the U.S. dropped by 15% due to Covid, amounting to 60 billion U.S. dollars. However, spending is expected to stabilize in the coming years. (Statista) TV isn't the only marketing channel to take a hit during and after the pandemic. Fortunately, experts foresee continued confidence in TV advertising in the coming years, either maintaining similar results or, as some other researchers predict, experiencing continued growth.
- The average number of hours a TV is on in U.S. homes is 6 hours and 47 minutes. (CSUN) According to research reported by California State University, U.S. homes leave their TVs on for nearly seven hours a day. This gives advertisers an opportune time to reach their audiences one or more times in a day.
- "As soon as chewing gum ads started showing people chewing two pieces of gum at once, sales doubled instantly. That's because people also started to chew two pieces at a time, just like they'd seen on TV." (Small Biz Genius) When done correctly, the power of TV should never be underestimated. This can easily be expressed in Small Biz Genius' example of an increase in sales by double when viewers mimic actions they saw in a TV commercial.
- 49% of Americans say they watch too much TV. (CSUN) With almost half of the U.S. population thinking that they spend too much time on TV, there's a great chance that your message will reach a large portion of your target market on the right channels.
- U.S adults spent 209 minutes per day watching TV video content and 103 minutes watching digital video content. (Statista) As of 2020, TV content consumption is still more than double digital video. Although both of these numbers are expected to drop in the coming years, TV is still expected to be higher.
- Approximately 42% of respondents said they would trust TV advertising over YouTube (6%) and social media (5%). (Thinkbox) TV remains one of the most trusted channels for advertising among viewers.
- 86% of TV advertising campaigns delivered a profitable return. (Top Media) With most TV ad campaigns achieving success for marketers, research shows that long-term success is likely with TV advertising.
- Investing in TV can increase advertising effectiveness by 40%. (Small Biz Genius) Even if you don't put all eggs in one basket, as you shouldn't, combining TV with the rest of your marketing mix can make your campaign at least 40% more effective.
- TV advertising spending is predicted to grow to $75 billion by the end of 2022. (Marketing Charts) As mentioned earlier, experts are confident that TV is far from dead. In fact, they expect to see continued growth in ad spend.
- Connected TV (CTV) ad spending is still significantly smaller than traditional TV ad spending, accounting for only $14.44 billion in 2021. (eMarketer) With nearly $45 billion more in ad spend invested in TV, research shows that marketers can get ahead of the curve by advertising on streaming platforms while still embracing the potential of linear TV.
- 79% of pay-TV households have pay-TV and OTT subscriptions. (TVtech) Despite experiencing a dip in subscriptions since the spike in popularity for over-the-top (OTT), research shows that consumers actually prefer both instead of one over the other.
- At least 21% of U.S. households have pay-TV only. (MarketingCharts). Alone, this statistic may not seem impactful. However, when you combine this statistic with research that shows most consumers have both, pay-TV is still proven to have a loyal following in some capacity.
- Streaming accounts for 26% of all time spent on TV, while cable TV still holds strong at around 64%. (CNBC) Streaming is growing rapidly, but cable TV still holds more than double viewers' time.
- "Per Parks' report, 43% of pay-TV households are interested in having video calls on their TVs; 40% want to control smart devices and security systems from the TV, and 34% are interested in playing video games on the TV through a cloud gaming service." (TVtech) Advancements in traditional TV experiences are already being considered to ensure TV remains relevant among viewers and advertisers.
- "Adults are about as likely to watch TV programs online as they are on pay-TV. However, when broken down by age, younger audiences (18-44-year-olds) are more likely to watch online than through pay-TV services." (MarketingCharts) According to Marketing Charts US Media Audience Demographics report, adults like both pay-TV and streaming while younger audiences prefer streaming. This suggests that marketers would do well to target older generations on pay-TV while simultaneously targeting younger generations on OTT and CTV.
- TV has a 90% weekly reach among U.S. adults 18 and older. (Statista) TV remains at the top for the largest viewer reach over any other marketing channel.
- TV reach is at 81% for Millennials (18 to 34), 92% for viewers 35 to 64, and 94% among viewers who are 65 and older. (Statista) With more than 80% reach among generations that take up a significant portion of the adult population, TV continues to show potential for marketers.
- The Old Spice campaign, "Man That Your Man Can Smell Like," experienced a 107% boost in sales following their TV ad. (Jeff Bullas) When done correctly, great TV ads have been shown to go viral and hit social media in the process. For Old Spice, their Super Bowl TV ad was so well-received that it acquired the number one spot for most-viewed sponsored channel on YouTube, 236 million YouTube views, 80,000 Twitter followers in 2 days, Facebook Interaction increased 800% with the personalized videos, and sales increased by 107%.
- A well-run TV ad campaign should produce an ROI between 300-500%. (Small Business Chron) A well-executed and developed TV advertising campaign often leads to a substantial ROI.
- Global TV ad revenue is projected to increase from 151 billion U.S. dollars to 162 billion between 2020 and 2024. (Statista) Although many marketers are spreading the word that TV is dead, research is showing otherwise. Advertisers are actually increasing their spending on TV, resulting in an 11 billion dollar increase in global TV ad revenue.
- TV advertising revenue in the United States will grow from 72.3 billion U.S. dollars in 2021 to 81 billion in 2025. (Statista) The United States is expected to account for almost 10 billion of the global increase of 162 billion. This suggests that marketers in the U.S. still find TV advertising to be a powerful component of their advertising strategies.
Why Your Business Should Be Advertising on Broadcast TV
TV advertising has always been a dominant strategy in advertising by itself, and although it has seen a decrease in viewership since OTT, it is far from on its way out. In fact, it's simply transitioning from a single marketing channel success to an essential addition to your marketing mix.
As research shows, TV is still alive, and well and marketers will see the best results when they combine it with other marketing strategies — even better when you work with a media partner.
When you're working with an experienced media company, you're able to not only produce high-quality commercials for broadcast TV, but you're also able to have their guidance from the beginning stages to measuring and analyzing the results. Check out our blog for more TV advertising tips and other marketing strategies.