What To Expect On TV Advertising ROI

Throughout the years, one of the most reputable and effective forms of advertising has been TV advertising. Commercials generate a great return on investment (ROI) based on the gross sales margin and the cost of making the campaign. Keep reading to learn more about return on investments, how to calculate them, and what to expect from TV advertising ROI.

Determine your goal for TV advertising ROIDetermine Your Goal

Before launching an ad campaign, you must decide on your goal. For most businesses, increased sales or service bookings are the goal, but sometimes ad campaigns are used to launch a new product or service or grow brand recognition.

If increased sales or service bookings are the goal, then getting an accurate snapshot of your sales history is important. Knowing your current or past stance will serve as an important metric in understanding your ad’s ROI

If brand recognition is your goal, then the ROI may be measured differently using values other than increased sales or revenue.


How to calculate TV advertising ROIHow To Calculate TV Advertising ROI

To measure the ROI, you take the gross sales margin and divide it by the ad campaign cost. 

Gross sales margins are simply the increase in sales revenue minus costs to run the ad campaign, which includes production costs and purchasing air time. For instance, after a $2,000 month-long ad campaign, a small business with a sales increase of $5,000 has a gross sales margin of $3,000. Let us use this example to calculate the ROI. 

After you have calculated the gross sales margin (in this case $3,000), you can divide it by the total cost of the advertising campaign ($2,000). This would result in a 150% ROI.

TV advertising ROI expectionsTV Advertising ROI Expectations

TV advertising can be very effective and can have a lot of benefits! Although advertisement channels have changed throughout the years, television advertising is still a great way to meet your goals.

With this in mind, a good percentage of television advertising is between 300%-500%. If we are using the 300% ROI as an example, this would mean you generate $3 in sales for every dollar you spend on advertising.

End Note

Calculating return on investment is similar to any other form of advertising. Whether you’re trying to increase sales or increase brand awareness on TV, your ROI results will reflect that goal.

At Nartak Media Group, we’ve found television solutions for almost any client and budget! We constantly seek affordable and effective television options that get our client’s message in front of the right people and grow sales. Are you ready to get started? Contact us today!


Contact Nartak Media Group Today! Let's talk.

How to Measure TV Advertising

Measuring TV advertising performance is not a walk in the park. As much as we wish this wasn’t the case, there is no singular tool or measurement solution that is guaranteed to work for every campaign out there. Although, as technology advances, our understanding of TV’s effects also improves. That being said, we are sharing 5 tips on how to measure TV advertising.


Tips To Measure TV Advertising


Measure Primary Impacts

      1. To measure TV advertising, start small by evaluating the responses to ads within minutes after each airing. Track the responses through calls, texts, or the web to evaluate performance. These numbers can provide an early indication of how people are responding to the ad.
      2. Evaluating these primary impacts can serve as an indicator of success for TV advertising, but keep in mind that it is not the full picture.


Measure TV Advertising - Back of man sitting on couch watching tvDon’t Ignore Secondary Impacts

      1. When viewing an ad, most people won’t be inclined to act right away. That is why it is extremely important to look at the secondary impacts TV ads can make. Say a person sees your ad today but doesn’t act upon it for a few weeks. They were still influenced by the TV campaign but weren’t inclined to take action immediately. 
      2. To keep track of secondary impacts like these, pay attention to see if the total number of new customers increases, or if your web traffic increases due to consumer searches. Both of these are great signs of effective TV advertising! One more thing to consider is adding a survey to your website asking visitors how they initially learned about your brand. This will help narrow down your measurements as well.


Pay Attention to Big-Picture Impacts

Measure TV Advertising - Hand holds remote control in front of tv

      1. Although both the primary and secondary impacts of your TV campaign will give you some good information and measurements to go off of, always pay attention to big-picture impacts as well. Not everyone will act on a TV advertisement immediately, or even within a week, so it is important to consider the lasting brand effects a campaign can have. 
      2. To do so, conduct surveys to look for changes in the way people think about or react to your brand. Also, make sure to notice if there is a greater range of opportunities for partnerships or an increase in overall revenue. All of these can be used to measure TV advertising.


Strive for Transparency

One of the biggest difficulties you will face when measuring TV advertising is the lack of transparency in the industry. Unfortunately, many companies make it difficult to evaluate the opportunity and overall performance. You want to strive to find a company that will give you full transparency when it comes to the performance data they collect. Here at Nartak, we believe our clients to be of the utmost importance, so transparency comes naturally. We always strive to provide the best strategic advertising services.


Measure TV Advertising - Open laptop with google analytics on screenOptimize Based on Performance

If you have recently launched a TV campaign but you have not seen improvement, that does not necessarily mean that TV advertising doesn’t work for you. Throughout the duration of the campaign, it is important to measure the performance using these tips, but also optimize and adjust the strategy based on those measurements. Working to improve the campaign will help you to have more confidence in the end result.


By themselves, the above tips could not satisfy as a singular measurement approach for TV ads. However, when the different effects that TV has are all taken into consideration, then you will get an overall, clearer picture.


Are you interested in learning more about TV advertising? Be sure to contact Nartak today.


Contact Nartak Media Group Today! Let's talk.