How to Advertise on TV: A Practical Guide for Brands
TV advertising seems to be veiled in mystery and myth. Lost in a Mad Men-esque aura, the general public often believes that it is only for big companies with infinite budgets—which they can afford to lose on an (allegedly) dying channel.
TV ads are also (allegedly) expensive to produce and (also allegedly) expensive to put on screen. They are (also, you guessed it, allegedly) hard to measure, too!
The reality is a lot more nuanced. Linear TV advertising is a very valid and even tempting option for many brands (large and small.) And it is definitely not dying (for a long, long time from now on.)
Here's what you need to know about advertising on TV.
Advantages of advertising on TV
Most people think TV advertising is expensive -- reserved only for large, multinational companies with deep pockets. However, TV advertising can also be affordable for smaller businesses, especially if they buy in the scatter market. It has many advantages that brands cannot ignore.
High impact
TV advertisements have high production value and can leave a lasting impression on viewers. With visually appealing graphics, catchy jingles, and creative storytelling, TV ads can capture audiences' attention and create a strong brand image that helps businesses stand out in a crowded market and leave a lasting impact on potential customers.
This is beyond assumption at this point. It’s an empirical finding most people have experienced (perhaps, even you?). YouTube, TikTok, and other social media have been the preferred advertising channels for the last decade (largely due to the high level of targeting detail and measurability). However, ads on these channels only tend to have 1-2 seconds to get an audience’s attention – after that, the next screen loads in a seemingly infinite scroll.
TV ads are different. Because our brains have already created use patterns, we are less likely to change channels (the equivalent of the ubiquitous digital “scroll”). As such, TV ads have more time to create synchronicity (which means your brain resonates – and makes it more likely for you to buy the product.)
Sure, TV ads have gained a bad rap. But the right strategy (e.g., pairing TV ads with digital advertising) can make your brand a winner. In our experience with our clients, there is a Halo Effect in search traffic minutes after airing an ad. More specifically, once they see an ad on linear TV, people will search for the products that interest them – showing the ad did its job.
Builds trust and credibility
TV ads are seen as more trustworthy than other forms of advertising, such as online ads or influencer marketing. According to Nielsen, 63% of people see TV ads as more trustworthy than other media – but other studies show similar results, to varying degrees.
The reason behind this is rather easy to understand: linear TV ads are often associated with premium content that shows up on already recognized brand name channels. In other words, most consumers perceive TV ads, especially ads airing on national TV, as hard/expensive to produce and, ergo, more credible. As a result, viewers are more likely to trust and believe in the products or services advertised on TV.
Allows for brand storytelling
TV advertisements provide ample time for businesses to tell their story and showcase their brand identity. With 30-second or even 60-second spots, businesses can create a compelling narrative that connects with audiences emotionally and establishes an emotional connection with the brand. This can help businesses build brand loyalty and establish a strong brand image in the minds of consumers.
Measurable results
Contrary to popular belief, TV advertising can be measured for its effectiveness -- especially in scatter TV (see below), but not only. Good technology can help you target and measure the success of your campaign, allowing you to make data-driven decisions for future advertisements. This not only helps businesses determine the return on investment (ROI) but also provides insights into consumer behavior and preferences to actively optimize their buy more agilely.
Easily scale to a wide reach
TV has a wide reach and is viewed by millions of people daily, catering to a vast audience with diverse demographics. Despite fragmentation, it is still a mass-reach channel, which makes it an effective medium for reaching a large audience quickly. There are many ways to achieve this scaled reach:
- Businesses could target specific demographics based on the time slot and endemic channel chosen for the advertisement. For example, a destination marketer can advertise on a travel channel during the weekend, when budding travelers may be watching TV while thinking about their next holiday. We often caution advertisers to be guided by the data since what seems intuitive may not actually pan out. For instance, a pet store brand may consider Animal Planet “endemic” when, in fact, it performed poorly with pet owners.
- Businesses could take a more audience-centric approach and leverage big data and machine learning to identify the most efficient times and venues to advertise on TV to achieve massive reach. Simulmedia advocates this approach.
TV helps brands leverage the medium's inherent credibility and engaging storytelling capabilities to amplify their brand presence to a large strategic audience significantly.
How does advertising on TV work?
Advertising on TV was a complex process. It still is, but software like Simulmedia makes it easier with a media buying platform that simplifies the process, provides the data you need, and helps you find the best advertising options for your business, audience, and budget.
To understand how TV advertising works, we must examine it from two perspectives: the different TV ad-buying markets and the different methods.
Types of TV ad buying markets
In linear TV advertising, there are three main types of markets you can choose from:
Upfront advertising market
The upfront advertising market is where advertisers can purchase TV ad slots months before the broadcasting season. This market allows them to lock in premium time slots at great CPMs before anyone else gets them. In return, the network receives a spend commitment for the year from the advertiser. It is particularly suitable for companies looking to secure a strategic position in high-demand periods.
Scatter advertising market
The scatter advertising market allows advertisers to buy TV ad slots closer to the airing date, from a few months to a week before. This provides flexibility for companies that need to adapt their marketing strategy quickly. This market is ideal for businesses looking for opportunities outside the upfront market or those with more immediate advertising needs.
Remnant advertising
Remnant advertising involves purchasing unsold TV ad slots at a reduced price, often closer to the airing date. They are not guaranteed to run: if all the spots are taken up by prioritized upfront and scatter buys, then the remnant ad won’t air (and the brand doesn’t have to pay).
This approach offers businesses a cost-effective opportunity to access premium TV advertising spaces that would otherwise be out of reach due to budget constraints. However, it’s also likely that the most coveted spots are taken, and remnant ads sometimes land in the least desirable places, such as overnight. During periods of high demand, remnant inventory may get crowded out by upfront and scatter commitments. Remnant ads are also called "direct response advertising" and are associated with infomercials.
Methods of TV ad buying
There are two main methods for buying TV advertisements:
Negotiated commitments in the upfront market
This method typically involves direct engagement between advertisers and broadcasters or their representatives, where terms, prices, and slots are discussed and agreed upon. This traditional approach offers personalized deals but requires significant planning and negotiation skills (on both ends of the deal.)
Direct insertion orders for scatter and direct response
Direct insertion orders (IOs) refer to purchasing TV ad slots through a TV sales rep. In theory, it works well. In practice, if you're a smaller buyer, you might find it hard to get the best slots or prices unless you're willing to pay premium rates. Not to mention it will sometimes be difficult to get the sales rep's attention in the first place if you aren’t a recognized brand.
Simulmedia – programmatic-like buying in the scatter market
There is a third way, unique to how Simulmedia buys! Simulmedia provides media buying services that are a cut above how everyone else in the industry buys. Simulmedia has built integrations with over 150+ linear TV networks which allows us to cherry-pick the spots in the scatter market where unreached members of brands’ strategic audience can be found.
Once the spots are chosen, the order management process is fully automated so that brands can get on the air in as fast as a week. For our digital readers, it’s as close as you can get to programmatic buying on linear TV!
Whether you're looking for cable or broadcast TV advertising options, Simulmedia can help you run an efficient and effective campaign that meets your business goals. So don't be afraid to reach out to us to learn more!
How to buy ad spots
If you decide to buy ads, you can do it yourself by contacting your local/ national provider (though it may be difficult to get the bigger players’ attention unless you’re a well-recognized brand name) or with the help of an agency.
Local stations (broadcast network affiliates) and cable providers are organized in metro areas or DMAs (called "designated marketing areas" as defined by Nielsen). This allows brands to have a range of ad spots to choose from across all dayparts, especially during times designated for local sports and news.
To buy national ad spots, a brand or agency needs to decide which ad market they want to buy in – the upfront, scatter, or direct response market. Because of viewer fragmentation, except for important tentpoles and sports events, buying national TV ad space through the scatter and direct response markets has become more accessible to smaller brands and independent agencies.
Working with an agency can make the process more manageable. But you should know that running a TV advertising campaign through an agency is not cheap. The big holding companies will require a significant spending commitment, so smaller, independent media agencies may be the only more affordable option for smaller brands.
There is some level of fine-tuning and experimentation with buying ad spots. You don’t have to be alone in this – decades of experience can teach you a lot, so you don’t have to feel like you’re starting from Ground Zero.
The costs of advertising on TV
Most marketers know that advertising on TV is expensive. It can be. But so can advertising on YouTube, Google, Instagram, or via any of the display/ programmatic networks online. The key is to differentiate between rates and costs. For example, the CPM rates of linear TV can often be lower than the CPM rates on Facebook (P2+ rates on linear TV currently hover at around $2, whereas the average CPM on Facebook Ads was around $9.7 as of July 2024).
But if the spot you’re buying on linear TV reaches millions of households, the low CPM rates in linear TV may still translate to high costs (with high reach). And if the higher CPM rates on a niche-targeted Facebook campaign only reach a few thousand people, then you may end up with lower costs (but also lower reach).
TV advertising rates can vary significantly depending on the type of market, location, time slot, and network used for your campaign. For instance, national ads during prime time slots or live events on major networks like Fox or ABC might have high rates, and because they reach large audiences, they can also have high spot costs.
On the other hand, scatter TV can also have higher rates than Upfront ads (because advertisers often make huge upfront commitments in exchange for discounted CPM rates). However, scatter ads still end up being less expensive (because you can buy spots on longer tail networks, which are cheaper, but still enable you to reach your audience.)
Want to start advertising on TV?
We have the tech and the expertise you need to advertise on TV, measure your performance accurately, and help you navigate what might seem, from afar, a complex environment. From handling fragmentation to helping you adapt your media campaigns on the go, we have solutions for you.
Get in touch and learn more about the options we offer at Simulmedia. We help customers like you overcome the challenges of TV ad buying and create successful campaigns they can scale to drive real, measurable results. Don't miss out on the opportunity to reach a wide audience and make an impact through TV advertising. Let us help you take your business to the next level!