Ten years ago, I attended a networking function at a city bar. I was engaged in the routine of trying to hold a beer, a plate of canapes, and a fistful of business cards, while also trying to shake hands.
The moment came to introduce myself: "Hi, I'm Tom. I produce TV commercials." A glass crashed to the floor, the saloon piano stopped abruptly, and the bar fell silent.
Ok, maybe not, but the guy standing opposite me looked indignant: "I skip all the ads. They don't work on me. I honestly don't know why anyone wastes their money on them." I pointed out that advertisers spend billions of dollars on TV every year, which they wouldn't do if they weren't working. He remained incredulous.
No one since has expressed their opinion so bluntly, but I do still hear many unfounded beliefs about TV advertising: that "TV is dead," that TV ads don't work, that only older demographics watch TV, or that TV isn't an appropriate channel for online businesses. The most persistent belief is that television campaigns are out of reach for smaller brands.
All baloney.
Many of the clients of my production company, JMS Group, are first-time TV advertisers who have recently revised their assumptions. If you love data-driven targeting, brace yourself. You're about to get a new look at TV advertising.
Linear vs. addressable TV
When thinking about TV advertising, you need to understand the difference between linear TV and addressable TV.
Traditional: Linear TV
Linear television reaches huge audiences, and airtime slots are available for media planners to purchase on behalf of advertisers. Those planners make judgments based on a channel's reach, the audiences of their shows, and how the makeup of the audience changes throughout the day. The point is to match an advertiser's commercial to the channels and shows that appeal most to the target market.
Linear campaigns can be exceptionally powerful, especially for national brand-building and consumer goods with broad appeal. But for smaller enterprises, linear TV is like using a sledgehammer to crack a nut.
Data-driven: Addressable TV
In an addressable TV campaign, the advertiser sets a campaign budget and is charged for the number of impressions served. Most of the ad must be viewed in real time to count as a valid impression. It's not all that different from pay-per-click (PPC) digital advertising.
Addressable TV is also a lot more targeted. Commercial broadcasters usually require viewers to provide identifying data (name, age, ZIP code, and so on) to activate subscriptions to their on-demand services. That subscription data gifts the broadcaster a great deal of information about who's on the receiving end of their content. And if the broadcaster knows where you're watching from, that means they also know who's watching.
This is where things get very interesting for advertisers.
Based on home address, ads can be matched to detailed consumer data, including household income, property value, car ownership, insurance renewal dates, phone contracts, age of dependents, pet ownership, and household debt—to name just a few. An advertiser's own customer data can also be folded into the selection criteria. That means neighboring homes viewing the same program could be seeing different commercials.
But do TV ads work?
There are countless examples of TV's effectiveness, but in my opinion, TV offers two main benefits for brands promoting an online offering.
Trust
In many countries, broadcasters are licensed by regulatory bodies that insist the ads they broadcast comply with advertising guidelines. Legitimate brands can clear these hurdles with relative ease because proving the effectiveness of their product or service isn't a problem.
But sub-par brands (unable to substantiate claims with hard evidence) can't get into the party. TV's tough entry criteria have helped it maintain a high level of public trust, and that trustworthy image is passed to advertisers: a television campaign provides immediate credibility.
Research has demonstrated that relatively new brands airing on TV are perceived to be both larger and longer established than is the case.
Research
When's the last time you watched TV without also looking at your phone? I'll forgive you for thinking that an audience with divided attention might be a negative; but in reality, it's served to increase the effectiveness of ads.
Brand search and direct traffic to an advertiser's site strongly correlate with TV exposure. Viewers intrigued by an ad are already holding a device to visit the advertiser's site immediately. In the UK, online businesses continue to be TV's biggest spending category of advertiser.
How to get started with TV advertising
1. Create a media plan focused on budget
If you retain an advertising agency, they'll be your first port of call. But if you're a startup with a clear vision for your brand, you might choose to engage directly with a production company and a media planner, keeping your campaign's creative direction in house.
But don't get carried away with the creative possibilities just yet.
The first thing you need to know is how much it's going to cost you, and the largest cost within any campaign is the media space purchased from broadcasters. Addressable TV platforms have their own sales teams that can draft an estimate for you based on your requirements, and many teams will have a roster of recommended production companies they can introduce you to.
Your objectives will determine how you split your budget between production and media-buying.
The production costs of a straightforward "direct response" commercial (where you ask people to take an action like calling or texting a number) might form ~10-15% of the overall campaign cost. My production company has almost 40 years of experience producing these types of ads.
An emotive cinematic masterpiece, intended to build long-term brand image, might justify tipping the scales further—assuming the campaign budget is substantial. But if you tip the scales too far toward extravagant production values, you'll get a beautiful commercial that very little of your potential market will get to see.
Once you have your media plan—even just an exploratory draft—you can move on to the next step.
2. Find a production company that specializes in TV ads
You need to check that the production company has solid experience in producing and clearing TV ads.
Sounds obvious, right?
I've picked up the pieces for many advertisers who had commissioned a general videographer or motion designer to produce a commercial. The finished ad would look fine but had unknowingly broken advertising guidelines and was unable to be broadcast. Some flaws could be corrected (by changing the script or adding additional on-screen text), but sometimes the only option was to start over.
Regulatory scrutiny varies around the world, but you should always anticipate your commercial will pass through some sort of compliance process before broadcasters can accept it. An experienced production company (or agency) should understand the clearance procedures of your country and manage the process on your behalf.
3. Draft a clear brief for the production company
Creative treatments need solid footing. That's where a brief comes in.
Where's the pain? TV commercials provide solutions to advertisers' problems. Figure out what yours is, and be candid about it (e.g., you offer a service in a sector with a traditionally poor reputation). Once I understand the challenge you're facing, I can develop a solution.
What are you selling? Many briefs state something along the lines of "we want to promote our business." Well, viewers have limited interest in your business. Just like with any kind of marketing, you need to present a solution to a want or need that they have. A family doesn't purchase a new heating system because they want one; they purchase because they're concerned their current system is going to die during cold weather.
Who are you trying to reach? I need to know what part of the market your commercial should appeal to. Auto manufacturers don't advertise a new model to everyone who buys cars. Instead, they carefully define their target: city-based affluent professionals, under 30 years old, who prioritize safety and fuel economy. Attempting to reach everyone speaks to no one.
What action must viewers take? Define your intended outcome. Sometimes your campaign is intended to build your brand image and keep your name top of mind. Other times, you'll want to direct a viewer to a website to make an immediate purchase or prompt a next step ("Book a test drive today!").
What's the budget? From your draft media plan, you'll have a rough idea of how much money you can allocate to production. Effective sales messages can be crafted for all budgets, but the specific creative approach (e.g., motion design vs. live action) will be largely influenced by budget considerations.
What's the duration? Commercials are 10, 20, 30, 40, or 60 seconds, with 30 being the most common. Duration doesn't necessarily affect production cost, but it does have a bearing on creative approaches.
One final tip: advertisers sometimes feel their first commercial is their one shot at advertising everything they offer. But ads can become diluted by shoehorned products and offers or an attempt to capture additional audiences. Don't push to fill every second. Be specific, and aim for clarity rather than abundance.
To read an in-depth guide to making TV advertising work for your business, you can find additional information on my blog, How Does TV Advertising Work?
This was a guest post from Tom Vaughan-Mountford, a senior producer at JMS Group, a TV commercial production company in the UK. Want to see your work on the Zapier blog? Read our guidelines, and get in touch.
