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Internet Advertising versus TV Advertising
The Effectiveness of Internet Advertising versus TV advertising
Free to Air television continues to be by far and away the most popular advertising medium in Australia but the most important question for Australian businesses is – where is the best return on investment?
According to the latest figures from Nielsen, TV advertising spending rose by 17% to $3.68 billion in 2010 while online advertising grew by almost 20% to $475 million. So in terms of spend, TV is significantly stronger than the internet but how many businesses in Australia can realistically afford a sustained TV advertising campaign? In fact, if you are considering the advertising strategy of your business and wondering about what medium delivers the most significant value, ask yourself the following questions:
1. How much of your marketing budget is spent on advertising?
If your advertising budget is less than $100,000, the likelihood is any TV advertising campaign would be a low-budget production advertised at off-peak advertising periods. If that gets your target market’s attention and presents genuine sales leads, then it might be a good approach.
2. What are the demographics of your target market?
If your target demographics include any of the following: young males/females; sports fans; parents; home owners; car owners; employed people; investors; high disposable incomes – it is likely that they enjoy popular TV shows and sporting events which command big budget advertising fees. When they are not watching TV, they are (a) working (b) online, (c) shopping or (d) socialising or else shopping & socialising online, so it makes sense to get in touch with them where they spend so much time.
3. How do I know my advertising campaign is working?
Accurately tracking the effectiveness of your TV advertising campaign is difficult – even getting samples of effectiveness through customer surveys can take time and dollars. ALL internet advertising is measurable through Google Analytics and unlike TV advertising – you can stop, tweak, alter or refine your internet advertising strategy at any time based on that dynamic campaign data.
4. What percentage of my target market sees my ads?
It’s difficult to judge accurately how much of your target market, or specific segments, see your ads on TV. Any available figures are usually projections and guess-timations based on demographics but with more digital TV channels (including free-to-air), TV viewing is more fragmented and fewer people are watching ads. On Google, ALL viewers are already targets because they have actively searched your product or service.
5. Can I afford peak period advertising?
Most businesses want peak period adverts. On TV, this is incredibly expensive – often into millions of dollars. Online there is no peak period for organic listings and even in PPC you can put an upper limit on your spend and still get prospective customers to see your advertisement.
6. What is a favourable return on investment for my advertising campaign?
How many of your customers come from your costly TV advertising campaign is difficult to measure – with online advertising you can measure exactly how many sales leads come directly from your website. Multiply that number by your conversion rate and there you go, you know how many customers you get from your internet advertisements.
7. What happens when the campaign is over?
When your TV advertising campaign is over, ask yourself if it has been successful enough to reinvest the same amount of dollars or even more. If you invest in search engine optimisation as part of a comprehensive internet advertising campaign, you will continue to see results for a period after you quit the campaign (the length of the period will depend on how quickly organic rankings drop after you quit your advertising campaign – but with measurable positive results, why would you quit?).
Internet Advertising offers measurable results and the best return on investment
Ten years ago, roughly 7 million Australian’s had access to the internet. Nowadays, over 17 million Aussies use the internet regularly – that’s 80% of the population, and around 9.5 million Australians are registered users of Facebook.
Recent research has suggested that the internet will challenge TV as the main advertising medium by 2014 – that’s less than three years from now. It makes sense to invest in internet advertising now to get a foothold, rather than eventually investing three years down the line where you are likely to have an uphill battle against established advertisers in what may well become the world’s most potent advertising medium.
If you want to know more about what internet advertising can do for your business, contact roi.com.au on 1300 650 274. We offer the most comprehensive performance-based internet advertising services in Australia including organic SEO, pay-per-click (PPC) and web design.
Posted on March 10, 2011
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