Why is TV so Powerful?

Why is TV so Powerful?

Television is exciting, engaging and empathetic, bringing brands and advertising campaigns to life unlike any other medium.

The television experience is a complete sensory feast, entertaining the nation and bringing people together with high-performing, iconic programmes like Coronation Street, Britain’s Got Talent, Downtown Abbey, Dancing on Ice, X Factor, Euro 2012, UEFA Championships, Take Me Out, TOWIE and many, many, more.

TV offers unbeatable reach. In just one day an advertiser’s message can reach 71% of the UK population.

Compare this with:

  • Magazines: 1% reach
  • Newspapers: 3% reach
  • Radio: 26% reach
  • Internet: 21% reach

Source: Thinkbox

TV is the Best Profit Generator

There are many ways advertising is judged. Was it popular? Did it win awards for creativity? Are people talking about it or sharing it with friends? These are all valid, but nothing is as important as whether or not the advertising was effective in hard business terms. Did it actually work? If not, then it is hard to justify the investment. TV works better than any other form of advertising. It generates the highest absolute volumes of sales and profit whilst also delivering the best ROI. However, you need proper econometric analysis to unpick this.

Thinkbox is able to point to four major and impartial studies into the effectiveness of advertising to make this assertion with confidence.

campaigns which use TV are on average 25% more effective thnones which dont

Supporting Evidence:

The PWC Payback Study 1

  • The most extensive of its kind ever undertaken using over 10 years of data for over 700 brands in seven different market sectors to unlock the payback of TV expenditure
  • TV delivered the highest sales return of any medium, £4.5m per £1m spent
  • TV delivered value for longer. The first year’s TV investment was still delivering at 80% of the Year 1 level in Year 2, and even Years 3 and 4 were benefitting from TV investment in Year 1

The PWC Payback Study 2

  • Brands have a 73% chance of losing brand value (WTP) within 12 months if they reduce their TV spend and a 67% chance of increasing brand value if they increase TV spend
  • Those making heaviest ads cuts are losing most brand value, especially those cutting TV
  • The damage from a year off TV can take five years to undo, says Data2Decisions
  • TV advertising has a far stronger correlation (82%) with brand value than any other medium (the nearest is press with 47%) and over double the correlation of the average for all other media
  • Campaigns which used TV are on average 25% more effective than ones which did not

TV has Unbeatable Scale and Reach

Television has always had the capacity to reach a massive audience. Commercial TV now offers a plethora of channels and programmes and can reach over 70% of people in one day. It is TV’s ability to deliver these numbers and in a short space of time that is a key USP for the medium.

In addition ‘Event TV’ and programmes like Britain’s Got Talent and Champions League Football are bringing in even bigger audiences, particularly for hard-to-reach viewing groups (like young men aged 16-34), as well as making famous the advertisers associated with them.

This capacity, unique to TV, can also serve to make brands seem bigger than they really are, instilling a sense of authority and stature and re-enforcing that TV is the biggest game in town.

71% of people can be reached in a day with commercial television

Supporting Evidence

  • You can reach 71% of people in a day on commercial TV, within a week you can reach 93% and within a month, 98%. No other medium can better this (Source: BARB)
  • Britain’s Got Talent peaked at 10.9m million people on Saturday, 28 April 2012
  • The average viewer watched 47 TV ads a day
  • The UK as a whole watched 2.7 TV billion ads a day
in the UK we watch 28hrs of TV a week

We’re Watching More TV than Ever Before

Linear TV viewing in the UK has been steadily breaking records in recent years until, in 2010, it broke through the 4 hours a day mark for the first time. This was an astonishing vote of popularity by the viewing public. We now spend more than a day a week (over 28 hours according to the Broadcasters’ Audience Research Board (BARB)) watching broadcast TV.  And don’t forget that this doesn’t include all the TV that BARB doesn’t yet measure, like out of home, online or mobile TV. This accounts for a minimum of at least an hour of extra viewing.

Supporting Evidence

  • In the UK we watched 28 hours, 14 minutes of linear TV a week in 2011
  • The daily average was 4 hours 2 minutes each

 TV is the Most Talked About Medium Both Online and Offline

TV is cultural glue. People love talking about TV, off and online, almost as much as they love watching it. The advent of 2-screening has seen TV become even more magnetic. Many of us now share a virtual sofa with the world and having a second screen to hand enables us to give live, online reaction to TV via social media, uploading pastiches to YouTube, joining TV-related Facebook groups, and airing opinions on Twitter.

Supporting Evidence

  • 21% of people in the UK 2-screen every day (IPA Touchpoints 4) 27% have used social networks such as Facebook and Twitter while watching TV (IPA Touchpoints 4)
40% of primetime tweets are about television
  • One in five (19%) has shared TV content on a social network (Thinkbox Tellyporting, 2010)
  • 9% have joined a TV-related Facebook group (Thinkbox Tellyporting, 2010)
  • 40% of primetime tweets are about TV, says Twitter
young people watch more additional TV online than most

TV is the Dominant Youth Medium

TV is the dominant youth medium. It remains the medium younger people spend the most time with. Plus, young people also watch more additional TV online than most. Young people have always been lighter TV viewers…but they grow into adults and we should always be careful not to confuse life-stage behaviour with long-term trends.

Supporting Evidence

  • 15-24s spend 43% of their media day with linear TV (IPA Touchpoints 4, 2012)
  • Young people watch a lot of TV, and it is increasing for 10-15s and 16-24s
  • 10-15s’ viewing has grown 11% in the past 5 years and 16-24s’ has grown 10%

TV is the Catalyst for Other Media

TV advertising doesn’t just work for what’s being advertised, it also creates a ‘halo effect’ across a brand’s portfolio. So, for instance, if a beauty brand advertises a shampoo product on TV, the campaign is likely to boost sales of its other products, such as body spray or moisturiser. If a bank advertises a mortgage product, its home insurance and current accounts will benefit.

TV advertising creates a 'halo effect' across a brand's portfolio

TV Builds Brand Fame

Quite simply TV is the best medium for making and keeping brands famous. From Hovis to Yeo Valley to PG Tips, we recognise the truth of this intuitively, and nearly all of the most famous brands have famous TV campaigns.

Source: Thinkbox