The Top 5 TV Advertising KPIs

Mar 24, 2023 / Industry Insights / FOTW


Are you considering TV advertising for your business? If so, you’re on the right track! Television advertising has been a popular marketing tool for businesses in the UK for decades. According to a report by Thinkbox, TV advertising commands a significant share of total UK advertising spending, with a 54% share of the market. Despite the rise of digital advertising, TV advertising remains a crucial way to reach a broad audience and build brand awareness.

However, with the increasing competition and evolving media landscape, it’s essential for businesses to measure the effectiveness of their TV advertising campaigns. In this article, we’ll discuss the top five TV advertising KPIs that UK businesses should measure and how they can ensure that their TV ads hit their KPIs.


Why Should You Consider TV Advertising?


TV advertising is a tried and tested way to get your brand in front of millions of people. It’s a great way to reach a large and diverse audience and make your brand known to potential customers. According to Thinkbox, TV advertising is still the most effective form of advertising, with an average return on investment (ROI) of £1.79 for every £1 spent. And that’s only in the short term! In that same report, Thinkbox states that the long-term ROI can increase to up to £4.20 per pound spent over three years.

That’s a pretty impressive return!

Why Are KPIs Important in TV Advertising?

KPIs are a way to measure the success of your TV advertising campaigns and make data-driven decisions about your marketing efforts. KPIs provide a set of measurable metrics that help businesses understand how well their marketing campaigns are performing. For TV advertising, KPIs are essential for determining the effectiveness of your ad and making data-driven decisions to optimise future campaigns.

By measuring your TV advertising KPIs, you can see how your campaigns perform and make changes to improve them when necessary. This data can help you optimise your campaigns and make informed decisions about where to allocate your marketing budget to achieve the best possible results.

Moreover, KPIs are also crucial for justifying your marketing spend to stakeholders. By measuring the impact of your TV advertising campaigns using KPIs, you can demonstrate how your investment is generating a return and providing tangible value to your business.


Which TV Advertising KPIs Should You Measure?


Remember, measuring your TV advertising KPIs is crucial to understanding the success of your campaigns. So, what are the main TV advertising KPIs you should measure during your campaign? Let’s take a look:

1. Reach

In TV advertising, “reach” measures the number of people who saw your ad at least once during the campaign. It’s a great way to gauge how many people were exposed to your message. Measuring your reach can help you understand how effectively your message is being distributed and how many potential customers your ad reaches.

How to measure TV ad reach…

TV ad reach is usually measured by using data from rating agencies like BARB (Broadcasters’ Audience Research Board) or the TV broadcasters themselves. Reach can also be measured using digital tools that track TV viewing on multiple devices — although this is only available if you decide to utilise CTV advertising.

2. Conversion rate

Using this KPI, you can observe how many people responded to your advertisement. The relative success of your TV advertising campaign is generally gauged by tracking the conversion rate, especially if you’ve decided to create DRTV adverts for your marketing campaign! If your ad has a high conversion rate, it suggests that it is convincing its target audience to perform the desired action.

How to measure conversion rates…

Since this KPI measures the percentage of viewers who were motivated to take action after seeing your ad, such as making a purchase or visiting your website, it can only be measured if you’ve utilised a call to action (CTA) in your ad. Conversion rates can be easily measured by tracking specific URLs, QR codes or using unique phone numbers in your ads.

3. Engagement

Essentially, the “engagement” metric measures your audience’s engagement level with your ad. Did they watch the whole ad? Did they interact with it in any way? Measuring engagement can help you understand how effectively your ad captured your audience’s attention. A high engagement rate indicates that your ad is resonating with your audience and that they are interested in your message.

How to measure engagement…

Engagement rates are more easily measured through modern advertising methods, like CTV, allowing advertisers to use digital tools that track viewership behaviour, such as viewing time or clicks on interactive elements. But when it comes to linear TV, advertisers have to rely on vague metrics provided by BARB and Nielsen.

4. Brand awareness

In a nutshell, brand awareness measures how well your ad increases the recognition of your brand among your target audience. It’s crucial that your advertisement leaves a long-lasting imprint on consumers’ thoughts. A strong brand awareness KPI can help you understand how well your ad builds brand recognition and drives customer loyalty.

How to measure brand awareness…

This KPI is slightly tougher to measure as it is relatively vague, but it’s still important to keep in mind. Typically, brand awareness can be measured by using surveys to ask viewers about their brand recall or recognition before and after the campaign. It could also be measured by looking at any increases in Google searches or social media follows.

Brand building takes time and is continuously ongoing. An always-on approach is the best way to build a brand as well as use emotive creatives to resonate with the viewers.

5. Return on investment

This crucial metric helps you understand if your investment in TV advertising was worthwhile. Measuring your TV ad campaign’s ROI can help you determine the overall effectiveness of your TV advertising campaign and make data-driven decisions about future marketing investments.

How to measure ROI…

To measure TV advertising ROI, you’ll need to crunch some numbers. First, calculate the revenue generated by the campaign and compare it to the cost of the campaign. This can be done by tracking sales, website visits, or phone calls that are directly attributable to the campaign. Once you’ve got those figures, divide the revenue generated by the cost of the campaign to get the ROI percentage. This will give you a good idea of how much bang for your buck you’re getting from your TV advertising efforts.


Top 3 Tips to Ensure That Your TV Ad Hits Its KPIs


Now, you’ve identified the top TV advertising KPIs and are ready to launch your campaign! But how can you make sure your ad hits its KPIs? We’ve got three tips to help with just that. By following these tips, you’ll be well on your way to ensuring your TV ad hits its KPIs and delivers the results you’re looking for.

1. Define marketing goals as early as possible

Before launching your TV advertising campaign, it’s important to define your marketing goals. This will help you choose the right KPIs to measure and ensure your campaign is aligned with your overall business objectives. Doing this as early as possible in the campaign planning process is crucial to give yourself enough time to adjust your strategy if necessary.

2. Develop creative yet compelling ads

To make an impact with your TV ad, developing a creative yet compelling concept that resonates with your target audience is essential. Think about your unique selling proposition and how you can communicate it effectively through your ad. Make sure your ad stands out from the crowd and captures the viewer’s attention from the start. Remember, a memorable ad is more likely to be shared and talked about, increasing your brand’s visibility.

3. Monitor and optimise

Once your TV ad is up and running, it’s essential to monitor its performance closely. Track your defined KPIs and use the data to optimise your campaign in real time. Make adjustments to your ad creative or media placement based on what’s working and what’s not. Better yet, be sure to develop slightly different versions of your ad so you can more easily switch out creatives when needed rather than have to redevelop the whole thing again! This will help you get the most out of your advertising budget and increase your chances of achieving your marketing goals.

Final Thoughts

In conclusion, TV advertising remains a powerful tool for UK businesses to reach a large audience and build brand awareness. However, to ensure that your TV ads are effective, you need to measure their effectiveness using KPIs. By tracking these KPIs and following our top three tips, UK businesses can create effective TV advertising campaigns that generate positive returns on their advertising investment.

Keen on developing TV advertisements that actually work? Get in touch with an experienced advertising agency like ours that’ll go above and beyond to help you get the job done!

Keen on developing TV advertisements that actually work? Get in touch with an experienced advertising agency like ours that’ll go above and beyond to help you get the job done!

Author - Jamie Smith

Jamie Smith is the Co-Founder and Creative Director at Fall Off The Wall, a forward-thinking TV advertising & creative production agency in the UK. Jamie Smith is an experienced Creative Director with a demonstrated history of working in the DRTV marketing and advertising industry.