TV Advertising ROI: What to Expect

Jacquelyn Walhberg

Jacquelyn Walhberg About The Author

Sep 17, 2020 10:45:00 AM

TV Advertising ROI- What to Expect

Advertising with a TV station is just as important as ever. Ninety-nine percent of homes have access to broadcast channels, and people still watch TV on a regular basis. They turn to broadcast television for news, entertainment, and more--and through your TV ads, you can reach into consumers' homes and provide them with vital information about your brand. So what kind of ROI can you expect? Let’s discuss.

Learn More About Developing TV Ads That Get Results

What is ROI?

ROI, or return on investment, is the results you experience as a result of your advertising efforts. It is calculated by dividing the income you received as a result of your investment by the initial amount you invested. For example, if you invest $1,000 in a campaign, and make $2,500 in sales due to that campaign, your ROI is 2.05, or 205%. As an advertiser, you always want to have a positive return on your investment: to make more than you have spent on your ads. 

What Should I Expect?

TV ads are the second most common source for consumers to find information about new products and brands, falling just behind word-of-mouth recommendations. Through those ads, consumers get a better idea of what brands have to offer or get an introduction to a new brand. Investing in TV advertising can increase the effectiveness of your campaign by as much as 40% over a digital campaign alone, especially when you integrate your efforts. Thanks to these statistics, TV remains an incredibly important advertising strategy. 

The ultimate return on your investment will depend on several factors. A well-run TV ad campaign can generate between 300% and 500% ROI--but your campaign must have the right elements to make that happen. You need a campaign that effectively reaches your target audience, that appeals to their needs, and answers their pain points. That means knowing where your target audience is, what they need, and how to tailor your commercials so that they fit their preferences.

Watch Here to Discover Why TV?

Working with an experienced media partner can make a huge difference in the return you get for your advertising investment. A media partner knows your target audience. They know what they watch and when they watch it. They know how they're interacting with ads and when they're most likely to respond. For example, 45% of people "very often" or "always" use a second device while watching TV, while even more do so at least occasionally. When you work with a media partner, you get the benefit of that experience and information.

Imagine, for example, that you create a commercial on your own. For many businesses, that could mean falling flat or not generating the full return you expected. When you work with a media partner, on the other hand, they can take those existing creative ideas and use them to create a commercial that will speak to your target audience more effectively. They position it in the right locations so that you can take maximum advantage of the content you've created. A media partner can also help streamline your creative with additional mediums such as OTT and digital ads, even repurposing creative to help expand the reach of your ad. 

The Overall Benefits

Not only does TV advertising help increase your overall revenue, but you can also experience a number of other benefits. They help increase your reach, especially if you work closely with a media partner that has access to your audience. Your TV ad often has a wider reach than other types of ads, since it casts a wide net. Many media partners also provide access to OTT platforms and social media pages, which can help expand your reach even further. This creates another point of contact for potential consumers who may need multiple touches with your brand before they're ready to make a purchase.

One of the biggest benefits of TV ads, however, is the authority that it generates. When consumers see your ad on TV, they have more trust in your business and your expertise than they do when they see your business through digital ads alone. That increased trust makes consumers more likely to connect with you when they have needs. Furthermore, TV ads allow you to put a face to your business--in many cases, a face that consumers will recognize as a member of their communities, increasing their connection to your business. 

Advertising with a TV station can have immense benefits for your business. It can raise your income, help generate authority, and create a sense of connection with your consumers. By working closely with a media partner, you can find a TV advertising solution that will fit the needs of your business and help you continue to grow.

The Ultimate Guide to Measuring ROI