No matter how good a company’s products or services are, they will struggle to gain traction with customers through word-of-mouth alone. No matter how much buzz a business gets, it’s nothing without a solid advertising campaign, allowing them to effectively gain the attention of prospective customers, which makes it a critical tool for achieving sales.
Advertising is also evolving far more quickly than it has since broadcast media first hit the world’s homes. And for the first time ever, experts have predicted that digital ad spending in the US—such as on social media and search engine optimization campaigns—would surpass traditional advertising spend, as companies cater to an increasingly digital audience.
Taking this into consideration, many startups would be forgiven for shunning broadcast advertising altogether. However, is there still value in a more conventional approach?
Digital advertising is big business
The decline of broadcast advertising can be explained by two main factors: a reduced reach and dwindling cost-effectiveness compared to digital advertising methods. Statistics suggest that fewer and fewer people are watching TV and listening to the radio. Indeed, a number of US households with pay-TV subscriptions fell by 6% between 2014 and 2018, while radio listening figures have remained stagnant for three years straight. Conversely, the surge in digital advertising opportunities has led to a 30% increase in its share of global marketing spend between 2008 and 2018.
Digital advertising is also often cheaper than buying TV and radio commercial slots. Statistics from LYFE Marketing show that the average cost per thousand impressions is $28 for TV and $10 for radio advertising, but just $2.50 for social media advertising. TV commercials are particularly expensive, especially for primetime slots—the average 30-second ad shown nationwide costs a mammoth $115,000. As such, it’s perhaps easy to see why so many companies are eschewing broadcast advertising methods in favor of digital alternatives.
Broadcast advertising still has merits
However, broadcast advertising can still trump digital advertising in a number of ways. One is that TV and radio ads make much greater use of music and the human voice, both of which can be a powerful tool. Music can be a particularly worthwhile inclusion, with research showing that we process it in the same part of the brain as emotions and memories. This can help adverts resonate and stick in our minds. However, companies must make sure that any music they use is licensed—businesses caught using songs illegally can have their advert banned. As explained by music licensing specialists MN2S: “This isn’t a simple process, and it’s best to involve experts in licensing and sync to make sure that the finer points are taken care of carefully.”
Research by Adobe Digital Insights also found that 42% of people find voice ads more engaging than other types of advert, with 39% going on to buy the product after hearing the commercial. Colin Morris, director of Adobe Analytics puts this down to the human connection these advertisements create, noting that they “have the power to resonate more emotionally and personally with a customer.“ For radio adverts specifically, many listeners are loyal to particular stations, so already have an emotional connection with them, something that advertisers can also tap into with regular ads.
Another huge advantage of TV advertising is how easily it can be tailored to specific audiences. Advertisers can acquire data on viewer habits and audience profiles across different terrestrial and digital channels, enabling them to broadcast adverts to the right people at the right times. For instance, running ads in daytime slots target work-from-home parents, while evening slots can be aimed at full-time workers.
What’s more, while TV and radio audiences are dropping, this hasn’t stopped broadcast media from retaining their huge reach. Statistics show that 80% of the US population watch TV on any given day, while radio reaches 90% of Americans. Broadcast advertising also isn’t necessarily as expensive as it may first appear either. While primetime TV slots certainly cost top dollar, local TV ads are a lot cheaper, only setting businesses back between roughly $5 to $34 per 1,000 viewers. These types of commercials are perfect for nascent businesses looking to establish a local presence in the early stages of their existence. All in all, startups could do well to combine their advertising methods, especially as broadcast ads can direct consumers into engaging with your business digitally. Research shows a multi-faceted approach can increase advertisement ROI by up to 35%.
How to get advertising right in any medium
There are a few things startups can do to boost the efficacy and affordability of their advertising campaigns:
Collaborate with creatives
It’s recommended that startups enlist the help of a dedicated creative agency to produce adverts, instead of doing so in-house. This will ensure that the campaign is of a high caliber. Creative professionals will also be well-versed in the different considerations of running ads, such as using persuasive calls to action, and effectively conveying your brand’s personality.
Consider the audience
Understanding who will be watching your advertisements can allow startups to more successfully target their key demographic. Take social media advertising—companies should conduct market research to find out which platforms their audience uses. For instance, Snapchat and Instagram are particularly popular among 18 to 24-year-olds. For TV or radio ads, companies should look for specialist TV channels or radio stations that will appeal to their target audience, as well as scheduling adverts in slots when their prospective customers are most likely to be watching.
Think about timing
At first, campaigns don’t need to run for any longer than four to six weeks, as this gives startups enough data to drive results. From this, they can ascertain which ads are meeting brand KPIs and driving ROI, using these findings to inform future campaigns. It would be unwise to run a three-month campaign, only to find out one month in that it’s not working, leaving your hands tied. If it is successful though, there are many examples of long-running campaigns that have provided what The Drum calls “incredible platforms for brands”.
Measure the results
As touched upon earlier, companies need to pay close attention to the effectiveness of a campaign. To do so, they should measure its impact on sales, website traffic, and engagement, amongst other metrics. If it has proven to be a success, the company in question can run similar campaigns in the future, while, it if hasn’t, they will know to try a different approach.
