TV Advertising Sparks Online Growth for New Brands

TV Advertising Sparks Online Growth for New Brands

In the bustling city of Los Angeles, a new study has revealed some fascinating insights into the world of TV advertising. While many industry experts have expressed concerns over viewer fragmentation and measurement pitfalls, it seems that brands are still choosing to invest heavily in TV ads. Since 2021, over $4 billion has been funneled into the medium by 931 first-time advertisers.

First Impressions Matter

According to research conducted by the Video Advertising Bureau (VAB), TV advertising may be particularly effective for brands just starting out. The report—titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers”—digs deep into how first-time advertisers are leveraging this medium to boost their online presence.

An Eye-Opening Result

After examining 201 first-time TV advertisers using data from Comscore between April 2020 and April 2024, the findings reveal something quite impressive. It turns out that 173 brands measured their website traffic before launching their TV ads, and the results were striking. On average, these brands saw a 12% increase in website traffic during the month they aired their commercials. Not only that, but the positive trend continued, with a 20% increase in monthly unique visitors sustained well beyond the launch month.

Dollar Signs and Clicks

The study broke down the results by investment amounts, providing further insights into how much impact money can have on traffic. Brands that invested $500,000 or less witnessed an average increase of 8% in unique monthly users during their launch month. Those that spent between $2 million and $5 million saw an average rise of 9%, while the big spenders—those investing over $10 million—enjoyed a whopping 36% increase during their launch month, followed by an impressive 42% increase over the span of their campaigns.

Who’s Winning Online?

Interestingly, the type of company also played a significant role in determining success. Direct-to-consumer (DTC) brands outperformed their counterparts, seeing an average monthly increase of 622,000 unique users while on TV, nearly double the overall average of 387,000. This highlights the effectiveness of tailored TV campaigns, particularly for brands looking to engage directly with consumers.

Investing in the Future

The report reveals a trend of growing investments over time among first-time TV advertisers. After their TV debut in 2021, advertisers increased their spending by 70% in the following months. However, as the years continued, the growth rate seemed to taper; in 2022, it was 54%, and in 2023, 37%.

Why Measure Website Traffic?

A key takeaway from all this data is the importance of measuring website traffic in relation to TV advertising campaigns. Doing so provides brands with a valuable insight into the performance of their campaigns, especially regarding mid-funnel metrics like consideration and sales. As the VAB’s president, Sean Cunningham, said, “This is hard data around web visits and Google search. These are specific customer actions that had to be performed.”

What Lies Ahead?

As advertising landscapes evolve, key trends such as retail media and ad-supported TV may stabilize, giving brands a more consistent platform from which to operate. With a shift towards innovative, data-driven advertising strategies likely on the horizon, companies will need to adapt and stay informed to ensure that their marketing approaches continue to resonate with consumers.

In conclusion, the findings from this study highlight how traditional mediums like TV can still hold immense power for new advertisers. Despite the challenges faced, there seems to be a robust connection between TV advertising and increased website traffic, making it an appealing option for brands looking to make their mark.