For years now, companies have been trying to create the perfect marketing formula that will reach the largest audience, have the greatest influential power, and of course provide the best return on investment (ROI) possible. This mix includes advertising across many mediums, including TV, magazines, and digital media. In recent years, the popularity of the internet along with the surge in social media use has led many companies to wonder if they should throw in the towel on TV marketing and make the shift towards more digital media marketing. However, when making this decision it all comes down to the same basic question, which one offers a better ROI, digital media or TV?
Benefits of TV Advertising
There is no doubt about the impact a single TV commercial can have on the consumers. TV ads have been around for several decades and the marketing world has learned how to use these ads to maximize the influence on the consumer. There is also no doubt that TV reaches a large audience. Studies show that 99 percent of the household in the United States have at least one television set and the average consumers watches more than five hours of TV every day.
This means if you target the right TV shows, with the right ads, you have a huge potential to boost sales with just one commercial. In addition, is not as important to have fresh content on a consistent basis when marketing on TV because it is not expected from the consumer. Companies also have well-developed strategies for analyzing the success or failure of TV ads and how much impact they have on the consumers.
Benefits of Digital Media Advertising
Internet use, on the other hand, is increasing at a rapid rate but still has not reached the level found in the TV industry. For example, only 74 percent of the household in the country have access to the internet and the average consumer only spends a little over two hours a day on the internet. In addition, this time is often spent in small time periods over the course of the day. This requires digital media ads that are able to grab the consumers’ attention very quickly.
However, digital media does provide an incredible ability to target specific consumers with specific ads. In addition, you are more likely to catch the consumer in the moment of consideration or even entice them to make an instant sale. Little research has been done to determine the effective of these ads in the same way you can with TV marketing. However, both Nielsen and ComScore have developed an online gross-ratings-point system that is helping to bridge this gap. In addition, online consumers demand fresh content on a regular basis in order to grab their attention and entice a sale.
Comparison and ROI Figures
While this tells a lot about the differences of TV and digital media marketing, it does little to determine ROI figures. Unfortunately, little research has been done in this area, mainly due to the fact that digital media marketing is still relatively new compared to TV ads. However, Procter and Gamble has taken some time to evaluate these figures and according to Marc Pritchard, their Global Brand-Building Officer, digital media offers the better RIO. In fact, digital media can provide as much as a $3 return for every dollar spent. Pritchard states that while TV advertising offers a larger audience, digital media allows companies to target their audience, which helps to increase sales and ROI.
This may make you think that digital marketing is the only way to go, but top named companies like Procter and Gamble, Unilever, and L’Oreal are not so quick to jump to this conclusion. Their top marketers, along with scores of others, have stated that digital media and TV are not comparable because they are two totally different mediums. In addition, they both play a vital role in the marketing industry. The truth is for a leading company to stay viable in today’s market their marketing strategy must include both TV advertising and social media marketing.