How To

How to measure TV advertising effectiveness

With almost 40% of worldwide ad spendings, TV advertising still takes the lion's share. But the rise of online advertising and its detailed performance measurement capabilities brings up the question on how to measure the effectiveness of TV advertising.


GRP: The traditional TV advertising metric

When it comes to TV advertising, there used to be only one standard currency everyone agreed on: Gross rating points (GRP). The GRP targets certain TV viewer demographics and tries to optimize this based on viewership data. The goal is to get the cost per gross rating point (CPP) as low as possible – in other words to reach your desired target audience with the lowest price possible. Besides the obvious limitations of measuring the GRP based on a TV panel, reaching certain demographics does not tell you how effective your TV advertising is in terms of selling more products or services.

The rise of direct response metrics due to the Second Screen

With the rising penetration of smartphones and tablets many TV viewers now use these as a Second Screen device while watching TV. This results in more and more TV viewers immediately engaging with a TV ad right after seeing it. At wywy we have seen ranges between 0 and 1% in engagement rate (visits to website / TV audience views) with our clients, i.e. up to 1 visit per 100 views of the ad on TV. What used to be a clear cut between DRTV (direct response TV) and branding ads is now converging. Traditional DRTV ad effectiveness measures such as call logs of special TV numbers, the usage of special URLs, special TV coupon codes have been replaced by the new reality of measuring uplift in website visits, conversions and app downloads.

Average TV advertising engagement rate by hour

tv-audience-engagement-rate-by-hour

 

 

 

 

 

 

 

 

 

 

 

 

Source: wywy

As these new engagement metrics can be measured on a very granular level down to each single airing, the impact regarding times of day, weekday, TV show etc. can be analyzed as well (read the full wywy study on TV engagement rates).

The challenge of low involvement products

Many products and service inspire TV viewers to take immediate action: Yes, I need a new car. I would like to go on vacation. Let me check out that new smartphone. Can I get a better insurance quote?
However, getting immediate feedback for low involvement products such as crackers or toothpaste is really hard. Most people do not really care about crackers or toothpaste enough – they only make a conscious purchase decision once they stand in the aisle at the supermarket. As these products will not trigger active responses, measuring the effectiveness of the TV ad is much harder. A little trick helps to measure passive TV viewer behaviour: Take your TV ad and serve it online to your target audience. Check the video ad completion, click-through and conversion rates and you’ll have a first indicator of which creative, which target group etc. works best.

Going holistic: Measuring overall TV advertising effectiveness

With its massive reach, TV advertising is still one of the most effective marketing channels. Beyond the direct measurable impact TV advertising influences other marketing channels (e.g. search) and has a long-term effect on the advertised brand. Marketing attribution players bring together all marketing channels and combine it with other data sources (e.g. credit card purchase data) to determine TV’s overall effect.

The next step: TV advertising optimization

Measuring the effectiveness of TV ads is not a means to an end but ideally should result in action. Optimizing the TV campaign plan accordingly will become the de facto standard. With the rise of programmatic tv buying, this optimization step will become automated. TV advertisers will need to set the campaign’s goal and make sure that this goal can be measured correctly.

The best practice check list

1. Start measuring the direct impact of your TV ads, using call log software and TV Analytics software for your websites and apps.
2. Include your TV campaign in your marketing attribution solution to get a holistic picture of the overall effect.
3. Reorganize your TV campaign planning to include programmatic TV buys, slowly shifting budgets to an automated solution.

 


Your contact for the US & Canada: (other countries)
victor-castello
Victor Castello