Advertising on Television
Advertising is essential for all small business owners in order to get the word out about their business and effectively target and connect with customers and potential customers. Radio, print and internet advertising have been amongst the most popular forms of advertising because many view television advertising as too expensive for their small business based on their business needs’ and what they can afford. Many small business owners believe only very large companies, like Coca-Cola can advertise on television.
Television is traditionally thought to be an expensive mode of advertising, but with the drastic changes taking place in the television space including many more media companies packaging television services for cord-cutters and others looking to save on television, the ability to purchase advertising space on television is shifting. Local companies have always been able to run local advertisements on television and this is something that has worked very well for a lot of small businesses. Cable television is actually a reasonable medium for placing local advertisements on popular cable shows, like Scandal on ABC.
Like any good business decision, there is a method to the madness of using television as an advertising medium for your small business. We will focus on some of the upsides and downsides of purchasing advertising space in the ever-changing world of television in this article. We will focus on some methods of advertising on television that may not cost as much as you would think and ways of advertising on TV. Growing with the process of advertising on the whole can help you advance your advertising potential on a much larger level if you learn to include social media and other forms of viral advertising in your advertising on television plan.
- TV Advertising Metrics
Television advertising metrics are usually measured by what is known by some as GRP, or Gross rating points. The purpose of GRP is to focus on TV viewier demographics with the goal of getting you, the small business owners, as many eyes on your product as possible. The CPP, or Cost-Per-Point, is another important acronym which focuses on the audience you are focusing on to connect with about your product at the lowest price possible. Additionally, television advertising is analyzed by some as CPM which is the cost a small business owner faces in order for their advertisement to be viewed by 1,000 people. Time of day and city you are airing your commercial in are two of the most important factors when considering when and where to run your television advertisement. Multiplying the CPM by the number of viewiers, in thousands, traditionally gives you the cost per minute of advertising in a certain city. This usually provides small business owners and potential television advertisers with an understanding of their potential.
Next, the small business owner will want to consider the costs faced to produce your commercial. You can do this independently or work in tandem with a television station and costs can vary widely depending on which route you choose. This really depends on your budget as a small business owner and the level of importance you place on your television advertisement. Usually, it is best to budget your television advertising budget so you can advertise at a level of frequency giving you the opportunity of ingraining your product in your customer’s mind. Television stations usually air commercials at 10 second, 15, 30 and 60. Direct response ads are usually even longer. Other factors you must take into account are the demographic of viewers, the most popular being 25-54 years of age so that is your biggest target market. As the trends of the television world continue to evolve, there is still emphasis on buying into live television for advertising sponsorships as the heart of the population will continue to watch television, only in more ways than they are now.
Network and TV shows charge different amounts based on the populartiy of a show. For special events which don’t occur as often, like The Super Bowl, NBC, the broadcast network will obviously charge a higher amounts ame goes for if ABC is hosting the Oscars. Cable networks like TNT, TBS, MTV usually draw companies with a bit more money and more expensive products because the same cable customers are usually wealthier than those with just broadcast since cable TV is more expensive. Other factors to consider are the time of year, i.e the last quarter draws more advertisers because holiday seasons and customers are buying. LA and NYC will cost more money than Alabama and New Mexico because they are known as major markets. The time of day is another key factor as most people watch TV at night, during the week and on the weekends. The times people watch when not working or spending time with family are known as prime-time spots in the television advertising industry. The fact that these are the most popular sime slots for major shows, sports games and gala events like the Oscars makes these time slots the most sought after for advertisers.
- Exposure from TV versus other Advertising Avenues
After analyzing the potential return for your CPM, i.e. what your CPM will be doing for you and the potential profit your investment can provide you with. Also, as with a lot of investments in any small business, you may need to invest for six months instead of three months or even one. Networks usually sell advertising spots in May for the upcoming Television season, also known as the upfront market. These networks then test out their new series’ they have been making over the winter, but there are no certainties that their shows will be a success nor that it will draw the most eyes to your product. For example, if you buy advertising slots on a TV show that averages 10 million viewers (which is a lot), you can compare the price of advertising with the 10 million viewers. Next, divide that by 1,000. Your number with be 10,000. Then if you figure you purchase a 30 second advertising slot at a price of $10,000, divide that price by half for a CPM of 2, you have your cost for 1,000 people on a show with 10 million viewers. Purchasing in advance will usually get you a better deal then buying when mos advertisers buy in May. Networks are known to even give out free commercial time when not meeting their quota.
Radio advertising is definitely still a preferred method for small business owners according to Nielsen, there is still about a 90% weekly reach of radio to Americans. Advertising on the internet, most commonly known now as search engine advertising on websites like Facebook, Instagram, Google, Bing and other social media sites, has also become a common way to exploit the internet market and reach more readers and potential customers. Online advertising is a good way to start, because with the use of Google Analytics and other analytics sites offered even by host websites, like GoDaddy or Weebly, the small business owner is given the opportunity to evaluate their weekly and monthly progression while with TV purchasing, the small business owner usually has to buy at least a month in advance at a higher cost.
Utilizing Google search and Google as a tool for advertising your busienss on television and digitally, will increase the URL search for your business as well as the traffic to your website. Here is a good resource for beginning to advertise on Google: https://www.lendvo.com/advertise-google-fundamental-keys-success/
Once you reach a level of comfort in advertising your business, you can learn some SEO tricks to incorporate into your advertising which can be done at little to no extra cost as you have already purchased the advertisint slot. Additionally, here are some basic SEO tricks if you are starting off with search engine optimization:
When analyzing television advertising versus the other outliets like radio, newspaper and online advertisiing, it is important to understand that television advertising is highly visual and interactive. Television was created as an experience and it still exists as one. There is something to be said for the subliminal messaging curated to potential custoemers by the television set. Television advertisement also serves as a catalyst for the promotion of brands and productions across multiple platforms after allowing companies to tell their story therough their visual and interactive message, thus creating and furthering their brand story. Those who do it well will utilize the commercial to draw customers and potential customers to their website. Multiplatform advertising is also the most efficient meaning advertising on TV, email, newspaper, billboard and social media are better than just advertising on one platform, especially as the connotation of advertising and the TV experience itself evolves.
- The Evolving Landscape of the Television Experience
The evolution of computers, smartphones and tablets and their place in the TV market is changing at a rapid pace and this has more positives than negatives even though it may not appear to for television advertisers at first glance. What is really happening, according to an IAB study, is that TV viewership is entering a multiscreening platform which means TV is now viewable on Smartphones like iPhones, Androids, Galaxy’s and others on the market in addition to tablets like the Kindle Fire, iPad, Verizon Samsung tablets and all types of computers including desktops, laptops and netbooks. In addition to these means of watching TV, there are also Connected TV’s (smart TV’s) that connect directly to the Internet and allow you to stream content, on devices like the Apple TV, Chromecast, Roku and so forth.
Viewing television is now a personal and mobile experience changing the definition of media fragmentation, according to Nielsen. Nielsen works to analyze which position in the market certain would be most beneficial for its clients based on the state of the given market, in this instance being the television advertising market. Monthly streaming is also beginning to play a large role in the evolving landscape of the television advertising business and the experience itself since traditional and newer customers are beginning to stream on a regular basis, whether they are streaming only or streaming in addition to owning cable, network TV or both. About 33% of customer’s strteam to their TV daily while nearly 25% of smartphone and tablet owners have increased their video streaming according to the IAB survey.
An incentive for advertising on television has always been the possibility that viewers will interact with the product being sold, like what they see, then position themselves in the market to purchase this product. In the past they may have been more likely to go outside and walk to a store or make a phone call to buy the product. Now campaign analysis shows more and more that advertisers are focusing on cost-per-click revenue and customer increases when advertising on commercials in television because the most common customer interaction with a product is that they will go on the Internet after learning about the product on the commercial to try to purchase it or at least learn more about it. The status of Second Screen, or interacting with two screens at once is that more TV viewers are actually interacting and engaging with the TV advertisements that are being presented to them. As opposed to TV coupon codes in the past, the user will now enter a URL to download a product and visit the website.
- Television Advertising, Past, Present and Future
The most important thing to understand about television advertising is that it is most certainly not a business of the past. Its utilization in the past is surely changing and has evolved, arguably, faster than it ever has before over the last several years since the world has become digitizled and second screen has become a term we use every day to describe people utilizing two televisions, screens, tablets or whatever devices they may be at once. As with many things in life, the ability to adapt will determine your success, as an entrepreneur and small business owner or whatever it is you may be going through.
Television advertisements exist now with more potential to fuel your small business than ever before because there are more ways of advertising and more analytics to test the success and failures of your advertisements leaving you the option to keep improving if you chose to take the opportunity, risk and to do so. Not only can you advertise your brand on a television set, but you can advertise it in a virtual way, or print, on a New York City subway or billboard in Los Angeles so your potential customer sees and interacts with their ad on their way to work before logging into Google or Facebook and seeing the advertisement for that same soap brand appear again making them more likely to actually type in the URL and look further into the product your small business is selling through Advertising on Television.
Digital ad spending in the United States is largely attributed to Silicon Valley businesses like Google and Facebook, which are accountable for two-thirds of digital ad spending. The shift occuring in advertising on television is shifting in this direction as it is becoming nearly impossible not to incorporate the Internet in one way or another into your marketing strategy. Including social media handles, or accounts, is essential in your advertising in print, on the radio or on television so ad dollars going in the direction of Silicon Valley tycoons is part of the natural paradigm shift. Almost 40 percent of investors in the media sector shifted their investments towards the digital platform in 2016 in the United States. This is supposed to be nearly 50 percent in 2020 according to analysts and research conducted by eMarketer. TV is not directly factored in here, but is a larger part of this stronghold considered by advertisers than print, radio or outdoor advertising such as billboards.
In order to advance your small business as an owner and entrepreneur, buying into advertising on television can be done on a variety of different levels as we have mentioned. Advertising on cable and/or network television can become an asset to your business, especially as you learn to incorporate social media and to the extent you can utilize other forms of advertisement to spread the word on your business and increase your CPC and URL visitation potential. Advertisers will need to change their scope of how to advertise as the future moves forward, using social media accounts on Facebook, YouTube, Instagram, Twitter as advertising tools. Similarly, television cable and networks will have to undeerstand their viewers in order to incorporate companies like Google and social media moguls into their advertising pitches and to draw more eyes to their cable and networks channels as they begin to face more and more challenges from those that are, in fact, capitalizing on the second screen equation. Those who fail to adapt will be left in the dust.