What Do You Get for Your Ad Dollar?

In today’s highly competitive marketing landscape, businesses often face a pivotal decision: whether to invest in TV Advertising vs. Digital Advertising. Should your company explore the growing potential of streaming advertising, commonly referred to as CTV or OTT? These terms, standing for Connected TV and Over-the-Top, respectively, refer to video advertisements integrated into streaming content viewed on demand. While Broadcast TV ads and OTT/CTV ads share certain similarities, an increasing number of businesses are gravitating towards streaming ads as a more effective way to achieve their marketing goals. At Ad House Advertising, we leverage decades of expertise to help businesses navigate these options and craft marketing strategies that deliver measurable results.

Today, Ad House Advertising is helping clients maximize their return on investment (ROI) by transitioning many from traditional Prime Time TV commercials to highly targeted digital campaigns through CTV/OTT advertising.

With nearly all U.S. households now subscribing to at least one streaming service, this shift enables businesses to engage more specific audiences while optimizing their marketing budgets. Let’s delve into the advantages and challenges of each advertising platform and explore how we achieve exceptional outcomes for our clients through strategic, data-driven campaigns.

Ad House Advertising: Experts in OTT/CTV Ads

Pros of Traditional TV Advertising

Traditional broadcast television advertising continues to be part of a powerful marketing campaign for many businesses due to its ability to reach viewers and to create a lasting impact. Despite the rise of digital platforms, traditional broadcast and cable TV ads retain key advantages that make them effective for building brand awareness and trust.

  • Broadcast TV commercials can reach a mass audience, sometimes thousands, even millions, of viewers at once. TV is ideal for increasing brand awareness among diverse demographics. While cable TV audiences are smaller, they provide opportunities for niche targeting based on specific networks.
  • High-quality broadcast television commercials frequently evoke strong emotional responses. The combination of visuals, music, and storytelling in strong TV ads creates a strong emotional impact. This emotional appeal fosters brand recall and loyalty. The effectiveness of video storytelling also translates seamlessly to CTV/OTT streaming platforms.
  • Companies advertising on broadcast TV are often seen as established and trustworthy by consumers. This enhanced credibility boosts brand perception and can increase customer confidence.

Cons of Traditional TV Advertising

While traditional broadcast television advertising remains a valuable component of many marketing strategies, it is not without its limitations. High production and placement costs, limited targeting capabilities, and the challenge of measuring precise ROI can make TV advertising less appealing for businesses with smaller budgets or niche audiences. As digital platforms continue to offer more cost-effective and data-driven alternatives, some businesses may find traditional TV advertising less efficient for reaching their specific marketing goals.

  • Advertising budgets for TV Advertising vs. Digital Advertising campaigns can be high. Because many viewers are not your highest-potential targeted audience, you must have a high reach (number of viewers) and frequency (enough commercials) to make an impact. This makes broadcast TV ads less accessible for smaller businesses with limited resources.
  • Broadcast and cable TV ads don’t offer the same level of precise targeting as digital ads. TV campaigns tend to reach a wide audience, which includes people who may not be interested in your product or service. This can result in wasted impressions, leading to a lower return on investment.
  • Broadcast and cable TV ads are not the place to find younger demographics today. With the rise of streaming services like Netflix, Hulu, and YouTube, traditional TV viewership is in decline—especially among those under age 50. Businesses that want to reach a younger audience will find digital advertising to be more effective.
  • Ads can also be placed on Cable TV channels, reaching customers via hard-wired cable subscriptions or satellite-delivered systems like DirecTV or Dish. However, these providers have faced sharp declines in subscribers, as viewers move to streaming providers (both free and paid platforms).

The Situation: What Does $5,000 in Ads Get You?

Now that we’ve explored the pros and cons of TV Advertising vs. Digital Advertising, so let’s take a closer look at what a budget can produce in each medium. At Ad House Advertising, we measure success in leads that drive sales– primarily phone calls, form submissions and store visits.
Our client had run both digital OTT/CTV campaigns and traditional TV ads to build brand awareness. We calculated the potential leads from each medium as best we could. Our findings are as follows.

Leads from Television Ads

While TV ads were effective at reaching a large audience—an estimated 437,680 viewers in a month—those viewers include many who are not currently in-market. In this business vertical, we estimated that 15% of the market could be in the purchase funnel. That meant about 65,652 potential “in-market” viewers. Using the client’s overall website analytics, we estimate that about 530 website visits, mobile calls, and form submissions would tie to the television ads. This highlights the importance of targeting strategies that focus on reaching audiences with a higher intent to purchase.

Leads from Digital Ads

Ad House Advertising created OTT/CTV campaigns with precise targeting and real-time data. Comparing the same $5,000 budget, we found OTT/CTV video ads were seen by 310,366 targeted in-market viewers. We estimated that 80% of these were in-market now, which is likely underestimating the audience. That pool of interested viewers was then more than 248,000 key prospects, much more than broadcast TV’s potential. Using the same criteria as for the broadcast TV viewers, we estimated more than 2,000 potential customers to the website for the $5,000 budget.

Summary

In advertising, a one-size-fits-all approach simply doesn’t work. At Ad House Advertising, we understand that every business is unique, which is why we offer custom strategies tailored to your specific goals and audience. Starting at just $1,000 per month, we create campaigns that maximize your budget while delivering measurable results. If you’re ready to elevate your marketing strategy and reach your ideal customers, contact us today. Let us craft a personalized campaign designed to fit your goals and drive success.

$5,000

Ad Budget

What would a $5,000 budget produce on broadcast TV versus online ads? While TV offers great branding, digital produces more leads for the dollar.

2,000

Prospects from Digital

Our $5,000 digital spend targeted in-market intenders and brought 2,000 visitors to the website. With our 10% conversion rate, that’s about 200 good leads in phone calls or form submissions.

530

Prospects from TV

Our $5,000 buy on broadcast TV had more impressions but if only 15% might be in-market, analytics estimated 530 website visits. At a 10% conversion rate, we’d see about 53 leads, 75% less for the budget.

“There’s still a place in many companies’ marketing plans for traditional broadcast buys. But your shoppers use of media for entertainment or information has changed, so your media buys should change too.”

Kim Smith Ad House Advertising
Kim Smith

Ad House Advertising: VP, Media and Marketing

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