TV Advertising Shines Bright for First-Time Advertisers in New York City

TV Advertising Shines Bright for First-Time Advertisers in New York City

In an age where streaming services and online content dominate our screens, it’s easy to overlook the potential of traditional television as a medium for advertising. But hold on—recent research has revealed that, despite the ongoing challenges with viewership fragmentation and measurement concerns, TV advertising is still a powerful tool, particularly for brands diving in for the first time. A study conducted by the Video Advertising Bureau (VAB) showcases how television can effectively lead to increased web traffic for new advertisers.

Big Investments Lead to Big Results

Since 2021, more than $4 billion has been invested by 931 first-time brands eager to make their mark on television. Isn’t that exciting? The report, titled “Breaking Through: How New Advertisers Are Using TV To Ignite Interest & Turn Consumers Into Customers,” took a closer look at 201 of these fresh faces in TV advertising. They examined website traffic data from April 2020 to April 2024, focusing on how these brands performed before and after their TV campaigns.

Of the 201 brands evaluated, an impressive 173 measured their website traffic prior to launching their TV ads. The results were quite remarkable. On average, brands that had kept an eye on their web traffic saw a 12% increase during the month they kicked off their TV campaign, compared to the six months before. It’s like flipping a switch—when the ads started, so did the customer visits!

Lasting Impact: More Than Just Initial Buzz

But wait, there’s more! This increase in traffic wasn’t just a flash in the pan. Brands that measured their website traffic not only enjoyed a boost during the launch month but also experienced a sustained increase moving forward. Month after month, they saw an average of 20% more unique visitors compared to the six months leading up to their campaign. There’s something to be said about the staying power that a good TV ad can provide.

Investment Amounts Matter

Now, you might wonder if the size of a brand’s investment plays a role in these outcomes. Indeed, it does! The research found that different investment levels yielded varied results. For instance, brands that spent $500,000 or less experienced an average bump of 8% in unique monthly users during their launch month, while those investing between $2 million and $5 million saw a 9% increase. The big spenders really made a splash—brands that shelled out $10 million or more enjoyed a staggering 36% boost in web traffic during their initial launch month, with an average monthly increase of 42% over the campaign period. Talk about a return on investment!

Direct-to-Consumer Brands Steal the Show

Interestingly, the type of brand mattered too. Direct-to-consumer (DTC) companies truly excelled, averaging about 622,000 unique users each month while advertising on TV—almost double the overall average. This kind of performance shows just how effective TV can be for brand recognition and customer acquisition.

A Trend in Increased Investment

Looking at the trends, it seems that first-time TV advertisers are increasingly confident in their strategy. For instance, investments jumped by 70% in the months following their debut campaign in 2021. However, as time went on, the growth rate gradually decreased—54% in 2022 and then 37% in 2023. It appears that brands are still figuring out the best way to utilize their spending.

The Takeaway: The Importance of Measurement

The key takeaway from this intriguing research is the necessity for advertisers to measure their website traffic in connection with their TV campaigns. This data can provide valuable insights into how well a campaign is driving consideration and sales—a crucial aspect for those looking to grow their customer base. As VAB’s president, Sean Cunningham noted, “These are specific customer actions that had to be performed.”

As we glance into the future, trends like retail media and ad-supported TV are likely to settle down, while new innovations, particularly in the realm of artificial intelligence, are set to ramp up. There’s no doubt that the world of advertising is changing, but one thing remains clear: TV advertising holds its ground as a formidable ally for brands looking to navigate the crowded marketplace.