11 November 2016
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TV makes a play for the pure players

This week’s egtabite highlights a trending topic for many European TV sales houses: the opportunity to attract new advertising clients from the dot-com sector. Spain’s Atresmedia has recently launched a website dedicated to the efficiency of TV, a mine of information for Spanish advertisers. One of the new studies presented on the platform demonstrates the huge confidence digital native advertisers are placing in TV as the most effective means to build their brands and drive sales. These so called pure players, or dot-com companies, include travel and hotel booking sites, online retailers, dating websites and providers of financial and other services.

When some of the biggest names in e-commerce allocate 90% or more of their adspend to TV, you can bet the medium is working just fine for them!

TV doing the business for digital native advertisers

One reason that television is so popular with brands is that it is the medium that attracts the highest attention to advertising. This is especially noticeable in the case of companies that dominate online retailing and services; the 20 biggest companies in this sector are placing 82% of their ad investments with TV, and these digital natives boosted their TV advertising month-by-month during the first half of 2016 compared to the previous year, together increasing their GRPs by 35%.

According to the official source Arce Media, the following companies are among those pure players devoting 80-90% of their media mix – and in some cases even higher – into television:  Trivago, KAYAK, Zalando, eDarling, Meetic and

The hotel booking site Trivago deserves a particular mention, as it was the leading brand in terms of GRPs bought on Spanish television for the months of June, July and August 2016.

And TV is increasing the breadth of its advertising clients: 7 of the top 10 new advertisers on television in the first half of 2016 were online companies. Facebook was the biggest new advertiser in the UK in 2015.

Why is this happening?

In short, because it works! One group of brands that increased their TV GRPs saw an average increase in brand awareness of 88.3% in 2016 over 2015, while a group that decreased their GRPs conversely saw their brand awareness drop by 9.4% over the same period.

TV also amplifies the effectiveness of the pure players’ digital marketing investments: television spots can double the volume of direct traffic to an advertiser’s website, increase app downloads, reactivate sleeping customers and reinforce search engine optimisation (SEO) strategies. Furthermore, TV drives search, as clearly indicated by data on Amazon’s first TV campaign in Spain. Google searches for the company’s Prime service correlated almost exactly with Amazon’s television GRPs during the campaign, peaking with a 13x increase in search activity.

It is worth noting that digital, often the perfect complement to TV, continues to attract advertising expenditures across a range of client sectors, but concerns about a lack of transparency, online ad visibility and fraud in digital measurement are increasingly being voiced by media agencies and advertisers. As digital’s flaws become better understood, television has an opportunity to deliver the business outcomes advertisers need to succeed and grow.

Why this matters for egta members

Countering the argument that TV is a platform for traditional advertisers and online a paradise for digital players, this case reinforces once again television’s attractiveness for advertisers looking for high ROI and solid long-term brand building.

Digital native companies, or pure players, are an increasingly important advertising sector, and the figures from the Spanish market show that TV is by far the top choice medium for some of the category’s biggest names.

The confidence these advertisers are placing in TV speaks to the medium’s strengths as the most effective way to build brand awareness, boost sales and drive online traffic.

For more information on this topic, you may also be interested in case studies of pure players investing in TV on Thinkbox’s website.

Target: TV
Background info

Please click on the links below to access the relevant documents:

» Atresmedia website (please click here)

» Atresmedia's "efficiency of TV" website (please click here)

» Case studies of pure players investing in TV (please click here)

Download in PDF

Please click here to download the PDF version of this egtabite.

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