Record-breaking year for TV advertising with investment hitting £5.46bn
Investment in TV advertising hit a record high last year, up £1bn to £5.46bn and exceeded pre-pandemic levels by 11 per cent.
According to data from Nielsen Ad Intel, all major advertising categories increased their TV investment in 2021, with the largest increase coming from ‘online-born businesses’ – businesses that began online, with no prior bricks and mortar presence.
This trend was driven by a pandemic-led boom in ecommerce coupled with TV’s ability to drive immediate growth in web traffic and long-term brand fame.
Nielsen, which measures linear TV advertising spend, reported that these businesses invested £1.12bn in TV advertising in 2021, an additional £335m compared with 2020, up 42 per cent. They represented 20 per cent of all linear TV advertising spend.
Within the world of online-born businesses, the largest-growing sub-category in 2021 was food delivery and subscription, with TV advertising spend up £58m year-on-year.
Thinkbox chief Lindsey Clay commented on the findings: “From start-ups to stalwarts, we’ve seen a remarkable surge in confidence in the effectiveness of TV advertising.”
“TV came back stronger in 2021 than anyone predicted – surpassing pre-pandemic investment levels – and there are many factors driving its return to growth.
“Yes, the short-term bounce back from the pandemic, but also its revitalisation by new advertisers; established advertisers re-evaluating TV; and advanced advertising solutions making it an attractive investment for a wider range of businesses.
She also pointed to the huge increase in advertiser demand last year, coupled with a return to pre-pandemic viewing patterns.
TV advertising remains incredible value. And what TV continues to offer advertisers is unrivalled: huge numbers watching on a big screen with the sound on in a high quality, brand-safe, fraud-free environment”, Clay said.