TV advertising is still one of the largest marketing channels, with advertisers investing $60 billion in linear TV and $25 billion in Connected TV in 2023 alone. However, the channel can be complex and expensive, especially for those seeking to demonstrate its business value conclusively.
In the recent webinar “Must See TV: How to Use Linear and Streaming TV to Drive Revenue,” industry leaders from Bed Bath & Beyond, Adore Me and Marketing Architects explored new strategies in TV advertising for audience growth and revenue enhancement.
Watch the replay here or dive into our detailed summary of the key points and innovative approaches shared.
SPEAKERS:
- Rick Egan, VP Marketing, Bed Bath & Beyond
- Ranjan Roy, VP of Strategy, Adore Me
- Angela Voss, CEO, Marketing Architects
Finding #1: Lean into reach to drive growth
Why reach through TV?
- TV is the king of brand awareness.
- TV avoids targeting pitfalls by putting your brand in front of potential customers and influencers.
- You can reach massive audiences on TV.
TV advertising is crucial for its unparalleled reach, acting as the top funnel channel. This reach brings immense power and opportunity, significantly impacting brand growth. Without sufficient reach, there’s a risk of falling into a performance paradox where capturing a larger consumer share starts yielding diminishing returns. Ensuring adequate reach keeps the brand mentally available for future demand, preventing the overlook of potential customers and enhancing the chances of converting prospects into customers.
Finding #2: TV’s ROI is determined by cost
Cost-effectiveness is crucial in TV advertising, where the expenses for spots, especially during events like the Super Bowl, have soared.
Beyond these, the digital ad ecosystem adds layers of costs through SSP fees, exchange fees and video ad serving fees, increasing the total expense for brands and impacting return on investment. When selecting media options, it’s better to consider a wide range rather than just major networks, for a more cost-effective and broader reach.
Remember—effective targeting is necessary, but it shouldn’t be too narrow. It’s important to understand where the target audience is most active and then broaden the focus to include a wider audience.
The panel also recommended the following CTV targeting methods:
- Demographic Targeting (based on age, gender, income and education.)
- Geotargeting (based on the viewer’s zip code.)
- Contextual Targeting (based on the match between your offering and streaming content.)
- First-Party Targeting (based on information gathered directly from customers.)
- Look-Alike Audiences (new audiences that share similarities with your customers.)
- Retargeting (targeting past and current customers or prospects.)
Finding #3: The same commercial should drive sales and brand.
In terms of messaging, there’s no need to complicate campaigns with separate approaches. The same commercial can effectively drive both brand recognition and customer action.
For example, Nuts.com, a company with over 90 years of history, which evolved into an e-commerce giant. When Nuts.com approached Marketing Architects, their goal was to expand brand recognition and grow new customers through television advertising. Typically, TV advertisers might create two separate campaigns: one for brand storytelling and another for prompting action. However, the strategy employed for Nuts.com was to combine these elements into a single commercial. This approach effectively fulfilled both objectives by merging brand storytelling with sales activation, demonstrating that a single well-crafted ad could drive better results by simultaneously enhancing brand awareness and encouraging customer action.
If you’re looking to gain more insights on TV advertising or other emerging channels in retail, make sure you’re registered for the 2024 CommerceNext Growth Show on June 11-13th. Secure your spot to be a part of the conversation on exponential retail growth.
