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Why Brands Use TV Advertising to Drive Customer Acquisition

Mary Grace Scully
Mary Grace Scully
Published: Aug. 31, 2020

Never been on TV before but considering it? Here are 4 reasons why TV advertising can be a performance powerhouse for your brand.

1. TV delivers massive scale.

TV reaches a lot of people: Data-driven linear TV reaches 112M households with internet access. Based on Simulmedia’s viewership data and reporting from JP Morgan, just three million households subscribe to only ad-supported streaming.

People watch a lot of TV: According to Nielsen, adults spend 3+ hours per day watching linear TV. 91% of all time spent with ad-supported TV happens on linear TV. Simulmedia did the math using data from Nielsen’s "Streaming TV Update: COVID," but you can read how we broke down the percentages on our blog.

Fun fact: You’ve probably been warned of cord-cutters, but the majority of people watch streaming and play video games in addition to consuming their favorite linear TV programs.

Bar chart showing average time spent per adult per day that captures viewership across live TV, time-shifted TV, radio and more.

This chart from Nielsen’s Total Audience Report Q2 2020 reveals that adults still watch 3+ hours of linear TV every day.

2. TV signals credibility and prestige.

TV signals “You’ve arrived”: National TV bolsters a brand’s credentials and helps them become “larger than life.” It’s the place brands go to make their best first impression. Just take it from Marco Marandiz, D2C growth strategist: “TV is that credibility we can all share together that you don’t get from viewing on your phone… It creates a relationship between your brand and other people.”

Brand-safe: Unlike digital video, TV faces content standards and guidelines that keep it brand-safe. Just take the #FacebookBoycott as an example. The FCC prevents advertisers from worrying about the quality of their commercial spots, but digital isn’t held to the same standards.

Fun fact: According to a consumer report by Clutch, 60% of consumers are likely to make a purchase after seeing a TV commercial. Also, 61% of people say TV commercials are the most trustworthy of all ads.

60% of consumers are likely to make a purchase after seeing a TV commercial.

3. TV drives digital-like customer conversion.

Full-funnel: Advanced TV can be optimized to achieve full funnel performance, with results that compare favorably with Facebook prospecting.

Ideal for performance and brand building alike: TV is the ultimate prospecting and retargeting vehicle. Back up and read that again: You can actually build lookalike audiences of your best mobile and website customers and target them while they watch their favorite linear TV programs.

Fun fact: On average, Simulmedia’s clients see cost-per-site-visit (CPV) decreases upwards of 20% after just one optimization. Wondering how in the world that’s possible? Read more about it on our blog about how Simulmedia optimizes to drive cost-efficient site traffic.

Cost-per-visitor decreases 20% on average after one TV advertising campaign optimization with Simulmedia.

4. TV is cost-efficient and affordable.

A great deal: The average rate of a national TV spot is nearly 5x less than that of a connected TV (aka streaming) spot. Plus, linear TV is 100% fraud-free. (Rates are estimated, household cost-per-thousand (HH CPM), averages. Source: Online marketplaces (for Connected TV) and representative run-of-audience/network schedules.)

Accessible: For just $25K, Simulmedia can test which TV creatives, dayparts, networks and programs generate the optimal CPV or CPI for your brand.

Fun fact: You can also air across 10+ national networks for just $25K with Simulmedia, which tends to be even more effective than airing on local TV inventory.

Connected TV spots tend to be 5x more expensive than linear TV spots.

For all these reasons, we recommend that linear TV serve as the anchor for any brand’s media buying/video advertising strategy, even those who have never advertised on TV before. We make the process easy, too.

Ready for more? We also have this jam-packed playbook called How To Scale On TV. It addresses everything from what you can expect from a creative agency, down to how your cost-per-acquisition will stack up with your digital channels. Spoiler: Most brands see their other channels improve while their TV campaign is live.

If you’re ready, speak with someone from our growth team or email us at advertise@simulmedia.com.