Advertising influences up to 90% of consumers' decisions to buy an item. This comprises conventional media like TV, radio, print, and outdoor billboards and the latest concepts like mobile and internet advertising. With numerous advertising media, business owners might wonder about the long-term effects of TV advertising and why it matters. Realistically, television advertising provides benefits ahead of all other mediums, making it an effective method.
Long-term effects of TV advertising
Many software in the market claim to measure the ROI of TV advertising. However, are they effective? Most look at the short-term impact of television advertising by computing the increase in KPIs like website visits and online sales within a short duration(1-2 hours) of television spot airing. Unlike other components of the advertising mix, measurement models don't consider that the impact of TV ads can persist for a long time.
Generally, people don't forget ads after one hour of their airing. Perfectly designed and executed ads will influence their habits for many days after the first exposure. Failing to incorporate the long-term impacts will lead to lower-than-usual ROI computation. This will also result in an untrue determination that TV advertising isn't effective and the ad money that should be channeled to other platforms.
Even though determining the TV ad ROI relies on incorporating long-term impacts, the effect of television ads doesn't last forever. Marketers and media planners should know the duration the said TV ad effect will last or when it dies such that they can avoid including it in the ROI model. However, this depends on two factors: the product's traits and the target audience's demographics.
What determines the impact of TV ads
Determination time: The time lag between the instant a client identifies a need and when they make the purchase is the determination time. That's the time consumers spend looking for product details and assessing the options. This is an expensive use of energy and time for consumers. Thus, the determination time is higher for expensive items and for things people purchase for long time use. A bad choice will aggravate consumers for a long time. When the determination time is higher, consumers are involved in search and will remember TV ads for long periods.
Demographics: this is a vital aspect to take into account. For example, the long-term impact is reduced for tv ads that target elderly people since they might have failing memories. It's also reduced for millennials due to their fewer attention spans.
While TV ads are more expensive to produce than other ads, and commercial air time is costly. However, promoting products on TV is the most influential since consumers trust it more than other mediums.
Using a one-size-fits-all ROI software won't paint an entire image of television advertising effectiveness. While marketers use a similar lens to learn the impacts of all media platforms on brand KPIs, they underestimate the impact of television, which tends to offer longer effects on consumer behaviors and attitudes. TV ads can show products, demonstrate their use and explain the advantages of consumption or ownership. It helps you reach a wide audience in the targeted fashion in a manner that consumers know and trust.
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