Marketing budgets in the UK have increased at the strongest rate since Q2 of 2014… But what’s driving that increase? In our latest blog we review the latest TV advertising statistics, data and trends that have shaped the TV advertising market over the past year.

For most, a brand’s advertising journey starts with press, digital, door drops, radio and OOH advertising. But that only works for so long. Sooner or later, most hit a ceiling and once that happens a television advertising campaign is often a crucial next phase in their marketing-driven growth.

New to TV ad campaigns

This is certainly the case for all new-to-TV advertisers we’ve had the pleasure to work with. The first TV advertising campaign we produced for Loaf is a perfect example. They had developed a very original way of communicating with their audience through press and poster campaigns and the time was right for them to translate their quirky presence into TV.

The results from just the first four weeks of the campaign going live were phenomenal. It’s safe to say they now believe in the power of TV. TV generally seems to be performing well for the furniture market with other similar brands reaping up the success of ATL activity, enjoying increases in brand search and brand fame, resulting in an increase in sales and swatch requests. Happy days.

TV continues to be the most effective form of advertising there is. And it is in fact becoming more effective. The market is buoyant with New to TV advertisers and online businesses looking to shift to the next level.
Throughout 2021, online-born businesses have been the biggest investors in TV advertising, accounting for 20% of linear TV spend. And guess what? They’ve seen the biggest growth.
Source: Nielsen Ad Intel, 2021

Television ads, the trusted choice.

TV also continues to be a trusted and safe environment for brands. TV in the UK is full of wonderful, high-quality content which broadcasters invest in heavily. This, alongside the tight regulation which governs TV content and advertising, makes it a safe environment for viewers and brands.

Our producers here at Toast are experts in Clearcast management and we have a great relationship with our Clearcast representative. We know all too well what you can and cannot say in broadcast advertisements and will advise accordingly throughout the TV advertising campaign development.

Viewing has now returned to pre-pandemic levels, with Broadcaster TV accounting for 87% of an average video advertising day. Interestingly, 2021 has seen BVOD (Broadcaster Video On Demand so the likes of BBC iPlayer, ITV Hub etc.) become the most cost-effective way to reach 16-34s.

Reach planning should still centre on linear TV for broad audiences, but BVOD certainly now plays a role in significantly improving younger audience profiles so plans should be weighted towards this targeted audience.
Source: 2021, BARB / Comscore / Broadcaster stream data / IPA TouchPoints 2021 / Rentrak / CAA (2021)

During 2021 we witnessed TV deliver greater sales versus spend for smaller brands. The optimal media budget mix varies by sector with TV often commanding the lion’s share. On average, smaller brands are investing 66% of their media budget on TV ad spend, with this activity alone resulting in 80% of their ad-generated sales.

As seen on TV advertising campaign

As seen on TV

An important point to note, over the past year it’s evident that when TV is active it also boosts the effectiveness of other advertising channels by 54% – win-win! There’s also a lot to be said about the ‘As seen on TV effect’ – being on TV is the fast track to becoming a trusted brand that will deliver on their promises.
Source: ‘As Seen on TV: supercharging your small business’, May 2019, Data2Decisions/Work/Thinkbox.

In 2021, the average cost of getting one person to see your advert was 0.7p. This is more relevant than ever given the double-digit increase in cost for digital advertising seen at the end of 2021. The average cost across TV advertising for 30 seconds is now two thirds the price of YouTube and less than a tenth the average cost of other online video platforms. So clearly TV is still offering advertisers incredible value.
Source: 2021, Thinkbox estimates using AA/WARC, Comscore, BARB

TV offers unbeatable scale and reach, it’s the fast track to reach consumers, and together TV and radio are the most trusted advertising channels in the UK.
Source: YouGov, Campaign “Only 1 in 10 Brits trust social media advertising”, 2021

The effects of TV advertising are visible, tangible and quick. Search, website traffic and PPC will see big benefits when TV is used. Behind every campaign, you need a strong creative idea that can be translated across different media platforms. It’s imperative that a campaign is delivered and executed to high production values.

Strong creative campaigns can generate 13x the sales uplift of weak campaigns so the need for effective creative is more important than ever in the TV marketplace.
Source: Nielsen / NCSolutions

360 Advertising Campaigns

Here at Toast, we have over 20 years of experience producing high-end TV commercials. We are producer-led with TV at the heart of everything we do. We regularly work on full 360 campaigns, producing ad formats across TV, Social, Radio, Press & Print, Digital, OOH and Cinema.

We know how to translate hero TV creative across multiple different touchpoints to fully maximise a campaign’s longevity and effectiveness. Our world is Direct Response and Brand Response TV.
But that’s only one half of the puzzle, the art of media planning is also more vital than ever. We are proud to have established partnerships with some of the best media agencies in London, who can help you plan and buy a campaign which will deliver.

For more information on tv advertising spending, check out our TV advertising costs page. Or get in touch to discuss what your next TV advertising campaign could look like.

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