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You are here: Home / Digital / E-Commerce reaping the benefits of TV

E-Commerce reaping the benefits of TV

9th November 2021 by Eleanor Grieve

instagram and tv

If you’ve watched any TV lately, you’ve no doubt come across an increased presence of online-born businesses during commercial breaks.

New players in the TV landscape include grocery delivery apps Gorillas and Getir, online/app-only finance businesses like Revolut, and curated clothing from Stitch Fix.

TV as an area of growth for online-born businesses

New analysis from Nielson shows how in comparison to H1 2019, H1 2021 shows TV as a significant area of growth and investment for online-born businesses.  

Online-born businesses – businesses that began online, with no prior bricks and mortar presence – are the biggest category of advertisers on TV so far this year. They account for 20% of all linear TV ad spend in Jan-Jul. This is ahead of Food (10.1% of linear TV spend), Finance (8.5%), and Entertainment & Leisure (7.2%).  

In H1 2021, online-born businesses invested an increase of 37%, compared to H1 2019 in linear TV. This equates to £559.9 million, with this trend seen across almost all sectors.  

This growth is leading the way to reverse the pandemic-induced slump in 2020 – a decline of -11%. Forecasts are suggesting 2021 will finish +18% on 2020, with online-born businesses investment in linear TV quickly moving to be £1 billion a year – just in the UK!  

The Nielson figures show growth in some unsurprising areas. Food delivery/subscriptions had the most additional investment with +£43 million (+194%) and exercise equipment (e.g Peloton) increased spend by +279% (+£9m) on H1 2019. Areas like used cars were also up +£25 million (+235%) and social media, who in H1 2019 didn’t advertise on TV at all, and in H1 2021, spent £11 million.  

Increase in linear TV expenditure, Jan to Jul 2021 vs Jan to Jul 2019

Increase in linear TV expenditure, Jan to Jul 2021 vs Jan to Jul 2019
Source: Nielson, Thinkbox-created category of online-born businesses. Brands shown are not the exhaustive list, but account for the majority of spend

Advertisers are utilising the different approaches offered by TV. Grocery delivery services Gorillas and Getir are running solely on ITV terrestrial in regions the service is offered, during times the service is open. Stitch Fix is running across national digital stations, often a more cost-effective way to buy TV.  

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TV provides a ‘shop window’ for online businesses. TV advertising is seen positively by consumers, conveying trust, quality, and credibility.  

With our ARMalytics suite, online-born businesses can see TV’s traffic-driving ability in real-time with Live Pulse. ARM has long known the power of TV and this is now coming to the forefront for traditionally digital advertisers.  

At ARM we launched more new brands to TV than anyone else during the pandemic. This is because we recognised the opportunity for direct to consumer brands and other online businesses. Aside from the cultural change that saw consumers wanting/needing to leave the house less (and ordering online more), the unprecedented low-cost TV pricing during the peak of the pandemic meant we could get smaller brands on TV sooner than perhaps thought possible.  

This analysis from Nielson shows that the opportunity was taken across the industry and that as we move away from pandemic times, the benefits of TV continue to show with investment only growing.   

Contact us to see how we can use our TV advertising capabilities to grow your online-born business.
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