TV advertising vs. digital marketing: where to focus your ad budget

The advertising landscape is undergoing a seismic shift. In 2024, digital video ad spend surpassed TV for the first time, capturing 52% of the total market share—a nearly 20-point leap in just four years. This trend reflects how consumer habits are evolving, with digital platforms now dominating daily attention spans for over seven hours per day. 

This raises a critical question for businesses: Should your ad budget go to traditional TV or digital marketing? The choice may be evident for certain companies, but the stakes are high for others. 

Digital marketing offers unparalleled targeting and measurable ROI, but TV still excels at mass reach, brand credibility, and emotional resonance. The right balance depends on your business goals, audience, and budget. Let’s explore the strengths of each channel and when to prioritise one over the other.

Fundamental differences between TV ads and digital channels 

When deciding where to allocate your ad budget, understanding the core differences between TV advertising and digital marketing is essential. These two channels excel in different areas, and their effectiveness depends on your business goals, audience, and resources. Here’s how they compare across five key criteria:  

1. Reach  

• TV: TV excels at delivering mass reach, making it ideal for campaigns targeting broad and diverse audiences. A single primetime TV spot can reach millions of viewers, including many who may not be interested in your product or service.  
• Digital: Digital platforms offer precise targeting, allowing advertisers to reach specific demographics based on age, interests, location, and behaviour. While the total reach may be smaller than TV, the audience is often more relevant to your campaign goals.  

‍Takeaway: Choose TV for maximum exposure and digital for precision targeting.  

2. Engagement  

• TV: TV ads are passive by nature but highly impactful. Combining visuals, audio, and storytelling creates an emotional resonance that can leave a lasting impression. However, viewers have limited ways to interact with the ad directly.  
• Digital: Digital ads are inherently interactive. Users can click, share, comment, or take immediate action after seeing an ad. Platforms like social media and YouTube encourage active engagement, making digital ideal for driving conversions.  

‍Takeaway: Use TV to build emotional connections and digital to foster direct engagement with your audience.  

3. Credibility  

• TV: Ads on traditional TV are often perceived as more credible due to the medium’s association with established brands and professional production quality. This trust factor can enhance brand perception and loyalty.  
• Digital: While digital ads can build trust through personalised experiences, they often face scepticism due to concerns over ad fraud or intrusive targeting practices.  

‍Takeaway: TV ads may hold an edge in credibility for industries where trust is critical (e.g., financial services).  

4. Measurability  

• TV: Measuring ROI for TV campaigns is challenging. Metrics like Gross Rating Points (GRPs) provide a broad sense of reach but lack the granularity of digital analytics.  
• Digital: Digital platforms shine in measurability. Advertisers can track user behaviour in real-time—from initial impressions to final conversions—and use tools like multi-touch attribution to optimise campaigns effectively.  

‍Takeaway: If data-driven decision-making is a priority, digital marketing offers far superior measurability compared to traditional TV ads.  

5. Cost  

• TV: Producing and airing a 30-second national TV spot during primetime can cost upwards of £90,000–£330,00,0 depending on the market. This high barrier makes TV less accessible for small businesses or niche campaigns.
• Digital: Digital offers flexibility for any budget, with entry points as low as £5 per day on platforms like Facebook or Google Ads. This makes it a cost-effective option for businesses of all sizes.  

Takeaway: Digital marketing is affordable and scalable, while TV requires a significant upfront investment but delivers unmatched mass exposure.

When to focus on TV advertising

TV remains a powerful tool for businesses looking to make a big impact. Its ability to reach millions of viewers simultaneously and create emotional connections through storytelling makes it a go-to channel for specific objectives and industries. Here’s when it makes sense to prioritise TV:

Best use cases

• Building brand awareness: TV is unmatched for introducing new products or services to a broad audience. Its wide reach ensures your message is seen by millions, making it ideal for top-of-funnel campaigns.
• Targeting a broad audience: National campaigns benefit from TV’s ability to connect with diverse demographics, especially during primetime slots or major live events like sports broadcasts.
• Emotional storytelling: TV’s combination of visuals, sound, and narrative creates an emotional resonance that sticks with viewers. This is particularly effective for high-impact campaigns, such as holiday ads or product launches.

Industries that benefit

• Consumer goods: Brands like Coca-Cola and Procter & Gamble rely on TV to maintain mass appeal and brand loyalty.
• Automotive: Car manufacturers use TV to showcase their vehicles’ features in dynamic, visually engaging ways.
• Entertainment: Movie studios and streaming platforms use TV ads to promote new releases or shows, leveraging their ability to create buzz quickly.
• Financial services: Banks, insurance providers, and investment firms leverage TV ads to build brand trust and promote financial products like credit cards or retirement plans.
• Beauty and fashion: Beauty brands and fashion labels thrive on TV’s visual nature to highlight product aesthetics and aspirational lifestyles.
• Pharmaceuticals: Drugmakers are among the top spenders on TV advertising. They use the medium to educate audiences about new medications or treatments while adhering to strict regulatory guidelines.

Advantages

• Emotional resonance and trust: Well-made TV ads are often perceived as more credible than digital ads, lending trustworthiness to brands that advertise on this platform.
• High engagement during live events: Whether it’s the World Cup or the Oscars, live events attract captive audiences who are more likely to pay attention to commercials.
• Massive reach: With millions tuning in daily, TV provides unparalleled exposure for brands aiming to dominate the market.
• Cultural impact: TV ads often become part of popular culture, creating memorable moments that resonate with audiences long after the campaign ends (e.g., iconic Super Bowl ads).

When to prioritise digital marketing

Digital marketing has revolutionised the advertising world by offering precision targeting, real-time analytics, and cost-effective scalability. It’s an essential channel for businesses aiming to drive measurable results and engage niche audiences.

Best use cases

• Engaging niche audiences: Whether you’re targeting fitness enthusiasts or tech-savvy millennials, digital channels allow you to tailor messages based on detailed audience data.
• Building communities: Social media channels enable brands to foster a sense of community by encouraging user-generated content, hosting live events, or creating interactive posts.
• Driving measurable actions: Digital marketing excels at prompting specific actions like clicks, downloads, or purchases through platforms such as Google Ads, Facebook Ads, or email campaigns.
• Market testing: Digital platforms are ideal for testing new products or messaging before a full-scale rollout. This use case is especially beneficial for startups or brands entering new markets.
• Retargeting campaigns: Digital platforms enable businesses to re-engage users who have interacted with their website or ads but haven’t converted yet.

Industries that benefit

• E-commerce: Online retailers rely heavily on digital marketing to drive traffic and sales through search engine marketing (SEM), social media ads, and influencer partnerships.
• SaaS (Software as a Service): Startups and tech companies use digital channels to target specific user personas with tailored messaging and free trial offers.
• Health and fitness: Fitness apps and nutritional supplement brands thrive on digital platforms where they can engage health-conscious audiences directly through video content or social commerce.
• Healthcare: Hospitals, telemedicine providers, and wellness brands use digital marketing to educate patients, promote services, and build trust.
• Real estate: Developers and agents leverage digital platforms to showcase properties through virtual tours, high-quality video content, and targeted ads.

Advantages

• Cost efficiency: Unlike traditional advertising channels that often require significant upfront investment, digital marketing offers scalable solutions suitable for any budget. 
• Real-time optimisation: Campaigns can be adjusted mid-flight based on performance data, ensuring better ROI compared to traditional channels like TV.
• Precise targeting: Platforms like Facebook and Google allow advertisers to define their audience by age, location, interests, and even online behaviour, ensuring that every pound spent reaches the right people.
• Higher engagement: Digital marketing enables two-way communication between brands and consumers through features like polls, live chats, and comment sections on social media platforms. 

Choosing the right channel

The decision between TV advertising and digital marketing ultimately depends on your business goals, target audience, and budget. If your goal is mass awareness or emotional storytelling, TV may be your best bet.

However, if you’re looking for measurable outcomes and precise targeting, digital marketing offers unparalleled advantages. For many businesses, combining both channels can deliver the best results—leveraging TV’s reach with digital precision for a holistic advertising strategy tailored to your needs.

‍Get in touch with us at Sidekick Studios to leverage either TV advertising and/or digital marketing for your next campaign.