Advertising on TV

A growing company needs a growing list of customers, and there are few better ways of increasing your brand than a television campaign.

But most companies stop here, because the next thought that runs through their head is: “but what about the expense?”

WHAT DOES A TV CAMPAIGN COST?

This is a frequently asked question, but there is no simple answer. It depends where you advertise (network, regional, macro, satellite), the audience you target (ABC1, housewives, men and so forth), a particular period of the day known as the daypart, number of ratings, commercial length and so on. And because there’s a fixed amount of commercials screened, the price of TV airtime is subject to supply and demand, with spots costing more at popular times such as Bank Holidays or the build-up to Christmas.

Nevertheless, it would be possible to fund a modest satellite or micro ITV region campaign for a low five-figure budget, a seasonal burst or test campaign for mid-to-high five-figure spends, or an annual programme from six figures upwards, depending on the platform. Big FMCG (Fast Moving Consumer Goods) brands and DRTV (Direct Response TV) advertisers often spend millions, justifying this against carefully calculated formulae of cost per converted sale or telephone enquiry. Sometimes regional budgets are quoted as ‘national equivalent’, which expresses what the spend would be if repeated across the entire ITV network, simply because it sounds more impressive.

But the price of a campaign isn’t just limited to the advert. There are many other things involved in the process both before and after, which should also be figured in to the total.

DOES TV ADVERTISING WORK?

For many consumer goods and services, even business-oriented brands, TV does work. It can increase sales, generate customer traffic, boost enrolment numbers and get telephones ringing. A study showed almost five per cent uplift in sales over the first 28 days of TV advertising, with an ongoing effect for some time after.

DRTV advertising of financial, insurance and personal injury services depends on virtually every spot working, with the costs per response analysed minutely. Compared with other media, 43% of all adults said they were most likely to respond to TV advertising, 13% for press and radio.

Of course, it would be easier if advertisers divulged their results, but this is market sensitive information. In the public sector, colleges, tourist offices, city centres and leisure attractions used to share market intelligence, although as competition for numbers increases, there is even a reluctance here too. Suffice to say, virtually all big brands have been built on TV.

HOW DO WE COPE WITH THE RESPONSE?

Gearing up for the anticipated response is an important corollary of any TV activity. In a sales scenario, it means strengthening the distribution chain, alerting stockists in anticipation of extra demand and negotiating with multiples for improved listings and shelf space.

For direct response campaigns, it may entail installing extra phone lines, arranging a freephone number, training staff to handle calls or, perhaps, using a specialist call centre, to provide an overflow/out-of-hours facility or undertake the whole data capture process. Remember, if you’re running peak time or late night advertising, consumers will often make the call there and then. It’s also important to involve the whole supply chain – production managers, department heads, HR people, staff and other stakeholders.

Your website provides another channel of communication, providing the URL is included in the commercial, and some level of interactive online functionality should really be incorporated to help manage response.

WHY IS TV ADVERTISING SO EFFECTIVE?

More than 90% of consumers turn to commercial TV every week, far more than any other medium. The average adult spends 26 hours each week watching TV and for the majority it’s the most talked about daily topic. Just 0.5% of us never watch TV, compared with 44% who never listen to commercial radio and 76% who never read regional papers. TV is a powerful medium because commercials capture the attention of the audience and communicate in a quick and often entertaining style.

TV is creative, full colour and fun; it intrudes directly into the living room. Studies suggest that receiving visual and aural input together is the best way to recall messages.

ITV and other channels restrict advertising to an average seven minutes in any one hour, ensuring advertisers compete with relatively few others for the attention of viewers, while ‘no clash’ policies mean not appearing in the same break as direct competitors. Besides, TV has a certain caché; it says ‘you’ve arrived’.

WHAT’S THE ROLE OF AN AGENCY?

Because TV is such a fluid and complex medium, with programming, ratings and prices changing all the time, you need specialists to plan the campaign against a target audience, negotiate with contractors, monitor ratings delivery and help analyse the results. A good agency should also be able to demonstrate strict payment terms, assurances of forward bookings and directors’ guarantees.

WHY SHOULDN’T I DEAL DIRECT?

Unlike other advertising reps, who are usually regarded with scepticism, TV sales people are often treated unquestioningly, as if they’ve just finished presenting the local news and popped round to chat about airtime. But TV contractors are selling organisations and can be as single-minded in pursuit of your business as any other. With an agency, you have someone in your camp, who negotiates on your behalf, has an informed, independent perspective on the airtime offering and can introduce efficiencies through audience targeting and programming selection, all for no extra cost.