09 / 05 / 2018
A recent study by Simulmedia looked into the sales lift that occurs through TV advertising, which brings light to the importance of using TV as an advertising channel for all types of businesses. As many leading brands nowadays are “digital native” or “digital first” companies, it often becomes difficult for them to justify spending on TV when they know for a fact that their customers are on digital platforms.
However, the study found that TV advertising is actually proven to increase website traffic, especially for direct to consumer brands. This justifies that TV is very effective, even for the digital first brands that were analyzed. Essentially, this shows that TV does more than just brand building, it can be a sales generator for digital first brands such as Birchbox that rely heavily on website traffic. For example, Blue Apron had an increase of 1,075% in website traffic after the TV launch. Airbnb had a 307% increase, and the average sales lift was 89%. The companies in the chart below increased their TV spend by 59% in 2016, while receiving a 184% increase in digital actions at the same time. Therefore, the study concluded that TV can and should be utilized for so much more than mass market brand awareness, it can truly drive sales.
Of course, we have our thoughts on this intriguing study. There is definitely a clear rationale behind why TV advertising works for digital brands. Nowadays, people will always check a website before buying a product. When they walk into a store and see a product, they go online and check the price and offerings at other retailers to make sure they are getting the best product for the best value. When they see a new brand or product on TV, they immediately go to the website, as well. In this way, accessing the website has become an essential step to the consumer decision making process. It doesn’t necessarily mean that they are making the purchase, but it means they are very close to it. It has become evident that consumers love video content through social platforms, and this love still extends to (and stems from) television.