Current pricing opens the door for new-to-TV advertisers
The Covid-19 crisis is impacting us all – particularly the media sector. The TV buying market place is driven by supply and demand so what happens if there is an increase in the amount of people watching (supply) and fewer advertisers wanting to advertise (demand)?
Supply – TV viewing on the increase
Thinkbox, the industry body of TV advertising, has released a report recently about the first four weeks of lockdown and all audience segments have seen increases in TV consumption. We all know that this was a period of time with great weather as well so they could have been higher. Harder to reach premium audiences such as Abc1Adults and 16-34 Adults are suddenly a lot easier to reach through traditional linear broadcast TV. There has been a big increase in daytime TV viewing in these audiences too. This is traditionally the cheapest airtime to buy and its now delivering a better audience profile that ever before. (You can read the Thinkbox full report here)
Demand – advertisers pausing TV spend
TV broadcasters’ revenues have plummeted in May and June and there is much speculation about July. The market for some is down more than 50% in May and June. The trade press such as Campaign is covering the drops:
Many brands cannot advertise. Whole business sectors have effectively shut down. So more supply than ever before and less demand means there has never been better pricing to advertise on TV.
Every advertiser that is currently spending on TV is getting deals never seen in a lifetime.
So what does this mean for potential advertisers?
Advertisers are able to buy TV audiences extremely cost-effectively. Here are a couple of examples:
- Upmarket all time audience
- If you invested £20,000 on a 30 second campaign in June 2019 targeting Abc1adults your advert would be seen by approx 2,000,000 Abc1adults. This year it would be nearer 4,500,000 Abc1adults.
- Daytime TV only audience
- If you invested £20,000 on a 30 second campaign in June 2019 targeting adults in daytime your advert would be seen by approx 6,700,000 adults. This year it would be in the range of 15,000,000 – 20,000,000 adult views
Is it time to try TV advertising?
In short, yes.
If you are not using TV advertising, now is the ideal time to try. Many clients are reporting inflation in their Google PPC costs and maybe reaching a point of saturation with programmatic or social media advertising. If that’s the case, TV can help increase brand awareness and improve your other marketing metrics.
If you had your product brought to life with a great low cost TV advert, where you know the advert is not skipped or played with no sound, how many customers could you get from 20,000,000 views of your advert?