The True Value of TV Ads: How Underestimation and Big Costs Impact ROI

TV marketing has long been a staple of advertising campaigns, but recent data suggests it has the lowest return on investment (ROI) among marketing channels like radio, social media, video, display, paid search, affiliate, and email. In this article, we will explore the reasons behind this underestimation and discuss how Videoquant can help optimize TV marketing ROI.

The Underestimation of TV ROI

The Longer Tail of TV Marketing Value

TV advertising is often measured in terms of immediate impact, ignoring the long-lasting effect it can have on consumers. People remember TV ads from their childhood, but they can’t remember an email they opened 60 seconds ago. This longer tail of value is often overlooked in ROI calculations, resulting in an underestimated ROI for TV marketing.

Click-Based Measurement

Current marketing measurement techniques are predominantly click-based, which doesn’t accurately represent the value of TV advertising. Since TV ads don’t generate direct clicks, their true value is hidden and often attributed to other channels, like paid search, SEO, and email.


Due to the click-based measurement issue, much of the lift generated by TV advertising is mistakenly attributed to other channels, such as paid search, SEO, email, and domain direct. This misattribution further skews the perceived ROI for TV marketing, making it appear less effective than it actually is.

Introducing Videoquant: The Solution for Optimizing TV Marketing ROI

Even after correctly attributing TV lift by addressing the issues discussed above, TV marketing often still has one of the lowest ROIs. This is primarily due to the high costs of developing and testing TV commercials and the complexity of the medium, which offers numerous variables that can be adjusted in a TV commercial.

Videoquant is a platform that mines content from millions of TV ads and social videos to identify patterns of what content doesn’t work for specific audiences. By guiding users towards content with a higher probability of success, Videoquant can significantly improve the ROI of TV marketing campaigns.

Leading brands have already witnessed the advantages of using Videoquant, with one notable pilot brand boasting a market cap exceeding $60 billion and an annual marketing budget surpassing $2 billion. By leveraging Videoquant’s predictive insights, this brand’s testing demonstrated the potential to save $2.4 million for every $10 million spent on video production, simply by steering clear of content with a low likelihood of success according to Videoquant predictions.

TV marketing is often underestimated in terms of ROI, primarily due to measurement challenges and misattribution. However, even after correcting for these issues, TV marketing still faces challenges due to high development costs and complexity. Videoquant offers a solution to optimize TV marketing ROI, helping brands save millions by guiding them towards content with a higher likelihood of success.

Most TV & video ads have anemic results; ~80% is caused by non-ideal creative strategy. VQ is a patent-pending system to avoid ineffective video concepts using outcomes data from 10M+ TV ads and online videos.


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