TV advertising FAQ

Below we’ve answered many of the questions frequently lodged about the TV advertising industry.

How has the development of digital technology affected television advertising?

The digital switch over has driven a swell in television content now available to TV viewers, bolstering an advertiser’s capacity to run targeted TV campaigns relevant to the interests of fragmented audiences. And, with the advent of HD and 3D television, TV viewers are being engaged in exciting new ways. Yet, despite these technological innovations, research indicates that linear television viewing remains a staple of the nation’s daily viewing habits. In fact, far from replacing linear TV, the rise of on-demand and Smart TV technologies are seen as a supplement to the live schedule. Irish television viewers are now watching more TV ads than ever before, and advertisers are spending more than ever before, with Ireland’s total TV ad spend rising to €220 million in 2013. This spend is forecast to increase by a a further 4% in 2014.

What is a ‘cost per thousand’?

‘Cost per thousand’ (CPT) is the cost of 1,000 commercial impacts for a target television audience. TV advertising is traded in this way. For example, if you want you TV commercial to be seen a million times, and the CPT is €5.50, the cost of advertising on TV will be €5,500.

How are the costs of a television advertising spot calculated?

‘Cost per spot’ (CPS) is calculated by dividing the total impacts by 1,000 and multiplying the number by the purchased cost per thousand (CPT). For example, if a TV spot reached 80,000 viewers, and the CPT was €4.90, then the cost per spot would be €392. The greater the number of TV viewers reached, the more expensive the cost per spot becomes, therefore television channels with higher TV ratings, such as RTE and TV3, will require a bigger budget than the smaller Sky Living.

How much would it cost to advertise during a prime time weekend slot on RTÉ One?

Launching a TV advertising campaign during the weekend prime time slot on RTÉ One would cost approximately €5,000 per 30-second spot. Prices will differ considerably depending on which TV programme holds the spot, as well as the TV viewing figures said programme generates. You would expect to pay a premium price for top rating television programmes such as Love/Hate and The Late Late Show.

Which television advertising formats are available?

A TV advertising campaign can be launched in a variety of formats. The difference is mainly found in the length, with 10, 20, 30, 40, 50, 60 and 90 second durations commonly available to TV advertisers. Different ad lengths serve different purposes; for example, a 30-second TV ad is typically aired to introduce a key selling point or new promotion. A 10-second creative is an effective tool in reaffirming brand presence and driving response, whilst a longer 90-second television advertisement is customarily seen as a marquee launch, designed to build brand awareness and stir viewer engagement. Many businesses will use a combination of lengths during the course of a television campaign to serve different stages of the marketing process.

Which audience demographics watch the most live television?

Although the answer to this question generally varies from channel to channel, analysis of television viewing figures proposes that a majority of TV viewing in Ireland emanates from the C2DE demographic. When measured against all day parts, the split between ABC1 and C2DE is marginal. However, when focusing on specific day parts such as daytime the difference grows, reverting back to a more even standing when centred on the breakfast and peak time television day parts. Typically, women consume more television content than men, though again this is dependant on the television channel and its content. When focusing on age, it becomes apparent that daytime viewing exhibits a high prevalence of older adult viewers; namely the 55+ demographic, whilst housekeepers and students also hold a notable presence. Evenings typically see the arrival of a strong 15-34 viewership.

Which audience demographics are the most profitable for TV advertisers?

No one demographic is more profitable than another. The most important and profitable way to advertise is ensuring that you are targeting the appropriate TV audience at the right time and on the right platform.

Which day part is the most profitable for TV advertisers?

This completely depends on your product/service, the objective of your campaign (is it for direct response or brand awareness?), budget and the television audience that constitutes your core customer base. There is no single day part that offers the most profitable return on your investment. For more information, please contact Guerillascope with your specific requirements.

Can you advertise regionally in Ireland?

Advertisers are unable to run regional campaigns in Ireland at this current time.

How is the television viewing audience for a programme or advertisement calculated?

Nielsen TAM is a research panel of 1,050 homes who are representative of all TV households in Ireland. Each home denotes, on average, about 1,500 Irish households. They help provide statistics around what and when people watch, their age, gender and demographic. Guerillascope uses TV advertising software to obtain and analyse TV viewing data from any day, month or year, therefore allowing us to measure the TV ratings for a specific show, television channel, or advertisement. A TV viewing audience is measured in Impacts or TVRs (TV Ratings).

How is the effectiveness of a TV advertising campaign measured?

The information and data gleaned from a combination of official Nielsen TAM viewing figures and our bespoke analytical software equips Guerillascope with the research required to effectively analyse a TV advertising campaign. Using such information, our team of TV experts can measure how many impacts are generated by a campaign, the amount of spots secured compared to the budget allocated, and which channels, day parts and programming generate the highest TV ratings. From this, we can develop comprehensive campaign analysis reports, as well as competitor analysis reports and sector analysis. All of this contributes significantly to the accountability of your TV campaign, with data measured in line with leads generated as a method of evaluating your activity.

What constitutes television viewing?

Nielsen TAM does not measure TV viewing outside of residential households; meaning engagement on portable devices is not recorded. In this sense, ‘television viewing’ is what people watch on their TV set at home. Catch-up television is a recognised source of measurement, however, a TV viewer must observe a TV advertisement for at least 10-seconds in order for it to registered and recorded on the Nielsen TAM system.

What are consolidated TV viewing figures?

Consolidated TV viewing figures are the finalised number of television viewers from a specific date, time or particular time period. These finalised figures are a union of live and non-linear (catch-up) viewing data, which typically takes about 7 days to reach publication.

Who regulates television advertisements?

BAI is the industry body responsible for regulating the content of television advertisements in Ireland, though some sales points operate on a UK transmission license, and therefore clear via Clearcast. Businesses and agencies must adhere to a set of strict guidelines when developing a TV advertising campaign; failure to do so may result in your TV ad being banned from television.

Who should I contact first if I want to advertise on television?

If you believe a TV ad could benefit your business give Guerillascope a call on +353 (0) 43 668 6666. Our team of TV advertising experts will provide you with a free TV plan, equipping you with a hassle-free launch pad for your TV advertising campaign.