MediaWave Actionable Insights and Industry News for Media Professionals
Portrait of a happy merchant

Small Business TV Advertising: 5 Best Practices

June 12th, 2019   ||    by Susan Kuchinskas

Television should be part of every small business’s media plan. As Advanced Television reported, television produces 80 percent of small businesses’ advertising-generated sales, and a recent Thinkbox study makes the case for small business TV advertising.

Understanding the ROI of TV advertising can be difficult for smaller marketers that don’t have access to powerful, multichannel analytics platforms. The key is to use best practices for your media planning and buying, taking advantage of achievable analytics and preparing now for when attribution will become a reality even for small business TV advertising.

When it comes to your small business TV ad buys, are you following these five rules for maximizing ROI?

  1. Buy wisely. The Thinkbox study found that companies should take advantage of seasonal sales effects, that is, focus TV advertising spend on times of the year when people are most likely to buy anyway—back to school, summer vacation, and winter holidays. To maximize the effectiveness of this approach, the company should go in strong at the right time of the year, rather than running spots over a longer period.
  2. Take advantage of current targeting options. Local television already allows advertisers to buy spots in a limited geographic area. According to Beet.TV, Comcast Spotlight lets small businesses that only serve a portion of a Designated Market Area buy commercials that will only be shown in that portion. This tactic greatly reduces waste, thereby improving ROI. Automated buying platforms provide targeting on a greater variety of data points, increasing the likelihood of payback.
  3. Mine your own data. No matter how small it is, your first-party data—information you’ve directly collected about your customers—is an important asset, according to Entrepreneur. You can combine this with third-party data from outside sources including census data to create customer segments. These segments can then be matched with cable set-top box information to target your media buys.
  4. Consider targeted ads at the national level. Networks and cable providers are working hard on improving their capacities to use data for addressable TV. Better segmenting leads to smaller audience groups, making national buys more affordable for marketers with skinny budgets, according to Axios.
  5. Prepare for the future of attribution. The measurement capabilities of TV aren’t quite as strong as what digital offers—yet. But when automated television takes hold in the industry, it will provide solid attribution and clear ROI calculations for small business TV advertising, according to eMarketer. The analysis firm expects spending on automated TV to grow by 58.4 percent in 2019.

Rosy Future

Advertisers will soon be able to measure consumer viewing of their ads on local television, thanks to cable and satellite TV set-top boxes and smart TVs. At the same time, the implementation of viewability standards combined with addressable television ads will bring clarity in the form of real data to that ROI calculation.

The industry has made huge steps in providing tools and data for small businesses to understand the ROI of their television ad campaigns. On the horizon: artificial intelligence will help large media buyers automate and optimize media plans, said Videonet. Penetration of AI into local stations’ automated buying platforms is no doubt years away, but this will ultimately offer a new level of accuracy in targeting.

There is much more to be done, but small businesses can understand and improve ROI now, thanks to today’s state of the art.

Tags: , ,

Share this page:

Share on Facebook Share on Twitter Share on LinkedIn Share via Email
arrow_upward