Should small businesses Advertise On TV or Radio?
Where Small Businesses Should Spend Their Marketing Attention (and money) in 2021
You are probably being hounded every couple of months (if you’re lucky, some get calls everyday) to advertise on one of the local television channels. If you agree to a meeting, they will come by and show you charts showing that their viewership percentage of the local news is growing and for just several thousand dollars a month your company will be shown during these peak times.
They will also most likely throw in a ‘digital package’ that includes banner advertisements on their website. Repeat this same process for radio.
The reason they show you percentage is because these numbers, in actuality, are small. Morning news is watched by maybe eleven thousand people on a good day. Let’s say the package you bought has sixty fifteen-second spots a month (plus the digital advertisements that are only shown on the local stations website) for $1500. $25 a spot doesn’t sound too bad, especially when you break it down to per viewer.
The trouble comes when we learn how we could be spending that $1500. Below are examples of cost-per-thousand, or CPM, rates for the top advertising networks.
Google Ads, the outlier here, is a bit skewed as it’s the CPM for their Display ads, not video. Even still, reaching one thousand people who are potentially interested in your business for $1.75 is light years better than the ‘put it on and pray someone interested watches’ that is television advertising.
Who Are You Trying To Reach
First, a study by Omnicom Media Group’s Hearts & Science agency found that nearly half of Millennials and Gen Xers are no longer viewing video content on traditional TV.
Millennials and Gen Vers are no longer consuming traditional TV. Instead, they are choosing to view content on newer streaming platforms–Netflix, Hulu, Amazon Prime, and YouTube TV.
On average, these important consumers are watching 30 hours of video content on streaming platforms per week. This makes these generations “unreachable” through traditional advertising methods.
When these consumers do consume TV (think live events, like football games), they aren’t solely engaged in the show. As soon as advertisements do come on, they are likely to pull out their phones or other devices, not even remembering the commercials at all.
The Bottom Line
In 2021, if you’re having an event where it doesn’t matter if the potential customer is qualified (and you’re okay reaching an older audience), then television or radio is perfectly fine.
Other than that, it’s exponentially more cost efficient to target consumers online. Whether on Google Ads or Instagram – spending your dollars here will reach your potential consumer much faster than with traditional advertising.
Let us show you how seamlessly we can work together to get you and your company the brand recognition it deserves.