If you prefer to you can read a transcript of the video here about current TV Advertising Opportunities:
“Hi, I’m Anthony O’Neill, MD at TVA and today I’m going to talk a little about the TV advertising opportunities that are currently available down to the current economic situation.
So the majority of businesses, aren’t really able to operate under the current lockdown restrictions, and obviously this is having a huge impact across TV advertising. Nearly every industry worldwide is being affected by the current situation and TV is no different.
So what I’m going to talk about is the opportunities that are available because of this.
So Tv is traded based on supply and demand which gives you your cost per thousand and at the minute demand has dropped off a cliff while ironically TV viewing is going through the roof and so these two factors together have created an ideal environment for anyone that is still able to advertise on TV in significantly reducing the cost to advertise on TV and in fact most broadcasters are seeing drops in prices of anywhere between 50 to 60% in the drop of the cost of advertising on TV. Which is incredibly frustrating for me and I’m going to talk you through why that is by showing you a cost comparative year on Year for ITV1 Tyne Tees, where we have a few advertisers that advertise regionally. Such as Pennine Home Improvements and Winn Solicitors.
If you were to say buy 200 ratings last year that would have been quite a sizeable TV campaign you would expect to see some good results from that level of TV advertising and you would expect to reach around about roughly 4.4 million viewers. In terms of how that would look as a spot list you would be looking at around 14 to 15 peak adverts in programmes such as Emmerdale, Coronation Street the early evening news as well as around 27 off peak spots, give or take a couple which is going to be daytime adverts such as This Morning, Loose Women or the daytime News. That campaign you could run it over either a couple of weeks quite heavily or you might spread it over a month to get better bang for your buck, So what’s the price difference in real terms?
If we look at this campaign year on year as I said last April you would have been paying around £6.35 duration ratecard price before any discounts which is what you would expect for April being that Easter generally falls into April which increases demand, so generally April is one of the more expensive months of the year, if we were to compare that to what the current cost per thousands is today for April, the current cost per thousand is roughly around about £2.50 for ITV1 Tyne Tees against Duration ratecard and again that is with no discounts, and that is quite a significant difference, you’re talking about a 60% drop in the cost to reach a thousand viewers.
So what does that looks like in real terms for a Tv ad campaign if you’re buying that 200 ratings, that would have roughly equated to last year just over £28,000 to run that TV ad campaign whereas to run that campaign this month, the same number of TVR’s would be costing you just over £11,000. So a difference there of nearly £17,000, which is just huge. Since I started working in TV, which is now nearly 20 years across ITV and The Tv Agency I’ve never ever seen costs as low as this. And so you can understand why I’m quite frustrated with how cheap it is and not being able to take advantage of it like we would.
And this isn’t just limited to ITV, Channel 4 and SKY have both had similar drops in the price of their airtime, there also a lot of deals that are currently available and incentives to help advertisers even further, in the current situation. So what I would be saying to people that aren’t in position yet to advertise at this moment is to consider how their marketing is going to change once the lockdown ends and are you going to need to think about how you might be able take advantage of this pricing as we know we’re coming towards the end of the lockdown and for businesses that aren’t as affected such as e-commerce business or fast moving consumer goods, or those businesses that have adapted to the current situation and are still able to trade. This is the perfect opportunity to try out TV, you’re never going to see prices like this probably again in the future once we do recover. So this is going to be limited in terms of demand for TV advertising being so low, so make sure that you do take advantage if you’re in a position to do so.
I’m Anthony O’Neill MD at TVA, thanks for watching this video about TV advertising opportunities if you have any questions or would like to ask us anything further about the current price of TV, how you might be able to take advantage of it, please visit our website theTVagency.com or visit me on LinkedIn and drop me a direct message I’m always happy to have a chat, and thank you for watching.”