TV advertising spurs growth of young brands

A new white paper from VAB shows that TV advertising can be a powerful engine of growth. The Global TV group invited VAB President Sean Cunningham to present the findings in an online event on 25 March.

“Staggering” was a word Cunningham repeated several times to describe the clear findings.

Brands are reaching TV faster and faster. Before, it had taken a brand about 8 years before launching on TV, but nowadays brands make the move in 3 years or less. In fact, the study discovered that these young brands stood to gain the most from TV advertising.

In the first month of a new TV launch, a young brand’s site traffic went up by 23%. The young brands who committed to TV advertising beyond the launch saw their traffic increase by a whopping 138%. There was some variation between product categories, health and wellness brands being the best performers, but the trend was clear, insisted Cunningham and VAB Senior Vice President Jason Wiese. No wonder then that in the second wave of COVID-19, young brands went on a spending spree while almost half of all the surveyed brands cancelled a TV campaign.

The move to earlier TV advertising has been driven by data. “These are data and analytics companies,” said Cunningham about direct to consumer brands.

How do these results from US data apply in Europe’s more fragmented market? “The dynamics are 100% transferable,” said Cunningham. “The ability of television to quickly make known a product that is more convenient, better or cheaper is universal.”

Find the white paper here (sign in for access).