The Impact of TV on Digital Performance

The Impact of TV on Digital Performance

Traditional television advertising continues to dominate, and in fact, has been shown to substantially improve the performance of digital advertisements by forming lasting impressions among viewers and building trust with your target audience. According to a report from Mediascience, television ads running concurrently with digital ads increases the average viewership time by 300% compared to running digital alone and leads to an increased brand recall from audiences by over 200%. The combination of TV and digital advertising also boosts purchase intent by an average of 15% among viewers.

The main reason television advertisements pair so well with digital is because TV ads produce a halo effect which validates and solidifies a brand’s reputation. This phenomenon causes digital ads to also be perceived as more desirable compared to without a TV presence, which makes digital seem more exciting and less intrusive than TV ads alone. From a strategic perspective, incorporating both digital and traditional TV advertising into your business is likely to increase performance by a larger percentage than either medium alone.

TV ads also bring a higher level of attention to branding, as a recent study from EffecTv shows that 94% of audiences watch the full length of TV ads, compared to only 78% of viewers watching full length digital ads. We also know that lesser known brands benefit more from TV ads than established ones, as well-known brands such as Target or Coca-Cola experience a diminishing return from a saturated market of television brand awareness, making it the perfect opportunity for smaller businesses to start casting a wider net with their marketing budgets.

According to a study conducted by TVSquared, television advertisements drive an additional 23% average weekly increase in website traffic while TV ads air. Conversely, when a TV advertiser goes off-air, they see a weekly reduction of website traffic by an average of 20%. Pausing TV airings can also reduce a brand’s visibility and awareness, which leads to lost opportunities of converting leads into potential sales.

Consumer’s trust in television as a credible source of new information makes it an essential factor in your direct marketing plan, as a solely digital strategy does not create the same level of brand reputation as combining the two. Mediascience also reports that TV ads are viewed on average more than twice as often as digital ads, so it makes sense that seeing an ad on both TV and digital will yield a higher level of audience interest and engagement.

It is essential for brands to develop a consistent TV schedule to reach their target audiences and attract new customers by running a wide range of different airings and channels. Building trust with customers has never been more important at a time such as this, utilizing the halo effect of TV paired with digital advertising will position your business to take full advantage of an omni-channel marketing strategy.

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Sources:

https://www.facebook.com/business/news/insights/what-do-marketing-leaders-say-about-combining-tv-and-facebook

https://yousenditcc.s3.amazonaws.com/user7/The-Halo-Effect_TV-Drives-Digital.pdf

https://www.mediapost.com/publications/article/356159/ad-effectiveness-tv-plus-digital-significantly-ou.html

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What’s Happening to Vacant Retail Spaces?

What’s Happening to Vacant Retail Spaces?

At the beginning of September 2020, retail space vacancy rates hit a historic high of 9.8%, which is largely fueled by Covid-19 shutdowns and safety concerns across the nation. The demand for commercial retail space has been slowly decreasing over the past few years as retail transitions to digital, but now with Covid-19, there is a surplus of availability without enough customers to lease out this vacant space.

In response to this change in demand, mall operators are forced to roll up their sleeves and focus on actively finding new tenants, and developers are beginning to repurpose mall space for a number of businesses, including schools, doctor’s offices, long term storage facilities, and even residential housing. While some businesses are feeling the impact of reduced physical retail space, large direct to consumer sellers such as Amazon are racing to secure vacant mall spaces in proximity to urban areas and adjacent neighborhoods to meet the increasing demand of online order deliveries.

Currently, Amazon is aiming to convert several former JC Penny and Sears department store locations in micro-fulfillment warehouses, strategically located close to urban communities which will allow orders to be delivered quicker and at lower shipping costs. Some retail business owners speculate that the introduction of micro-fulfillment centers in conventional mall spaces will increase the rent for struggling businesses, yet many property managers are even negotiating discounted rates to find long-term tenants that can reliably cover overhead costs.

Amazon recently reported that it doubled its net profit to $5.2 billion in its 2020 Q2 earnings statement, which indicates that the ecommerce giant is not going anywhere. The future of vacant mall space may seem uncertain as many businesses and consumers alike are cautious about the upcoming holiday shopping season, however the bigger picture of retail is much brighter than it may appear. Overall, Amazon retail sales still only account for roughly 5% of all retail spend across the country, which goes to show that no single force is dominating the entire retail marketplace.

With the new changes in physical retail and online ecommerce, it’s more important than ever to establish a sound marketing plan and take advantage of an omni-channel advertising strategy to reach new customers. At River Direct, we offer a number of performance driven marketing solutions to help your retail business grow through linear television, Amazon listings, over-the-top/connected-tv, and social media marketing.

For updates on new market trends and industry insights, follow our River Direct Facebook & Instagram pages, and subscribe to our newsletter.

Sources:

www.bigcommerce.com/blog/amazon-statistics

https://www.theverge.com/2020/8/9/21361004/amazon-simon-mall-fulfillment-warehouse-retail-ecommerce

https://www.cnn.com/2020/09/18/business/malls-repurpose-empty-stores/index.htmlhttps://www.cnn.com/2020/09/18/business/malls-repurpose-empty-stores/index.html

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