What Kind of ROI You Can Expect to See From TV Advertising Stations

Laurel Lawton

Laurel Lawton About The Author

Aug 17, 2020 11:27:00 AM

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Television marketing has been around for a long time, yet even with all the new platforms available for running ads, it is still one of the best options out there. 

Although many advertisers may already know the amazing reach that TV advertising has, they may not understand the benefits that TV advertising has on their ROI and why TV ads are an essential investment for a company to make. 

What is ROI?

The Return on Investment (ROI) for a television advertisement is defined as the amount of business you can get as a direct result of your advertising campaign. In theory, it is used to evaluate the efficiency of your TV ads. 

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ROI Formula:

The ROI equals the gain you get from your advertising divided by the advertisement campaign cost:

ROI = Your Gains/ Overall Advertisement Spending

Some Important ROI Factors:

  • High ROI means the gains compare favorably to its costs.
  • Negative ROI means a net loss. 

For Example: Let's say you invested $1,000 in an ad campaign, and the margin of your gross sales were $2,000. To calculate your return on your investment, you would divide the $1,000 ad campaign costs into the $2,000 gross sales margin (your gains), giving you an ROI of 200%, meaning that for every advertising dollar you spent, you generated two in new sales. 

The ROI You Can Expect When Advertising With a TV Station

According to the Advertising Research Foundation, TV advertising is the most effective vehicle for driving ROI, and adding digital to a TV campaign can result in a 60% kicker effect. That is why when advertisers start focusing on this critical data, they quickly figure out that increasing their ad spending also increases their ROI. 

What is a Good ROI? 

Most well-run TV ad campaigns produce an ROI between 300 to 500%. With the help of a media partner who can assist you in creating ads that get in front of your target audience, your business will be able to reach these high metrics. 

Effects of TV Advertising 

Measuring the ROI of a TV ad is a good indicator of the returns you get from your ads. However, these TV ads have several long- term effects that can also benefit your business. 

  • Brand Awareness: Brand awareness and familiarity increase after individuals see a TV ad. This, in turn, increases the click-through rate of online advertising and onsite conversations. 
  • Reach: TV ads are an excellent way to reach individuals who take longer to react to one specific ad. 
  • Effectiveness: TV ads are known for their efficiency. Brands like Fitbit saw a significant and immediate change in website visits once their TV campaign first launched. 

How Can A Media Consultant Help? 

Now that you understand how beneficial TV ads are, is there a way to maximize these benefits? In fact, there is. Working with a TV station media consultant can provide you the creative help and strategy that you need to substantially transform your ads and make them as effective as you want them to be.

Don't believe us? Let's take a look: 

Let's imagine you want to create a commercial for a new local bar. You may think all it takes is filming a commercial and dropping it off at your local TV station. However, producing a creative and competitive TV ad is not an easy feat. And for it to stand out amongst the thousands of other commercials, you need to make sure that every aspect of the ad is perfect. Working without a media consultant guiding you through the process, basically means you are going in blind. Making arbitrary decisions and hoping that ultimately the commercial reaches the target audience that you want.

However, when you work with an experienced media team, you will receive not only the creative help that your ad requires to set it apart, but they will provide you a wealth of knowledge from start to finish ensuring that your ad takes off. 

  • Target Audience: These media consultants will figure out who your target audience is and craft an ad around them. In the example of a local bar opening, everyone knows that bars are a hot spot for sports fans. When you associate your ads with a favorite sports team, you can reach your target audience faster. 
  • Timing: Another important factor that your consultant will help you figure out is your ad's timing. Specifically, when the best time to run your commercial is so that you can make sure that your target audience is watching. 
  • OTT: Most skilled consultants can help you use the amazing features of OTT and really zero in on your target location, behaviors, age, and many other specific demographic information you are trying to reach.

Television advertising continues to be a fantastic tool for businesses to showcase their services and their products. Yet, to truly optimize its full potential, you need to partner with a media partner that not only understands what you want to accomplish with your advertising but a team that has the experience to bring your vision to life. With this close partnership and a clear plan, you will quickly begin to experience all the benefits that TV advertising can bring.

Ultimate Guide to Measuring ROI

Topics: ROI