Interest rates are low- boosting advertising

15th February 2017

INTEREST Rates are expected to remain low amid the rise of inflation and lack of substantial growth in earnings: TV advertising is more relevant than ever.

Although as a result of the verdict that inflation is increasing due to the rise in wholesale costs of imports, as a result of a weaker pound, the lack of incentive to save is enabling more disposable income to be proportioned to spending.

Consumer spending has remained buoyant in spite of ambiguity regarding the UK’s long-term economic route post-Brexit, therefore with the spending market being aided, any nominal losses to disposable income would be offset.

At a time when TV advertising is continuing to facilitate the scope to have complete autonomy within campaigns, costs can be saved at a creative and media buying level.

With previous linear TV campaigns and singular online campaigns, cost effectiveness, scale and impact are limited.

Given the gaping chasm between TV and online video viewing figures, the potential for the same ad you used for TV to be used omni-platform is tangible.

87% of all viewed video is situated on TV, while none of the top ten most shared ads of the last two years were TV original, underlining the potential upscaling of TV ads to digital audiences.

You can now aspire to increasing your profits, with consumers compelled to spend amid low interest rates.
You can now aspire to increasing your profits, with consumers compelled to spend amid low interest rates.

Display has always been a concern-notwithstanding fraud- throughout the continuous growth of online: this is increasingly being sophisticated to provide more transparency.

Given the expected stagnation or further reduction in interest rates, consumers are expected to be as liberal as they have been in recent months regarding spending.

Thus combining the increasingly credible and reliable metrics of analysing ad display and consumption, allied to the increasingly accessible routes of getting your brand to TV, overall advertising costs will only decrease.

In particular niche brands who are entering the TV fraternity for the first time can utilise the economic transience and attempt to establish themselves through either brand or direct response.

Interest rates remaining low in the long term does not ultimately conflate to a successful economy, however while economic routes are forged your company can still take advantage of DRTV if limited by budget.

Brand response ads will draw your consumer away from the instant sales uplifts desired from DRTV, but create a more long-term platform for profit increases and ROI.

Additionally this approach will assist your business’ ability to take your ad online, recycling it as a part of a collective brand campaign that courts your consumer rather than instantly persuading them to buy.

Given the lack of long-term economic assurances though, direct response does still present the chance to maximise any short-term trends in consumer spending.

If interest rates rise again for instance, overall consumer spending may decrease slightly depending on the state of inflation and the cost of living.

This may result in a far more reticent spending market, where the priority should be given to longer term brand response marketing if cash flow permits.

In the short term and with the proven ability to elicit sales immediately, DRTV and the utilisation of new innovations in TV advertising can enable you to strike a cost-effective entry to TV.

Of course if your budget is slightly less stringent or you already have that established brand, utilising BRTV would be more preferential in the long-term regarding your profit increases.

DRTV over a three year period is ultimately grossly unsuccessful in comparison to BRTV, however if you are new to TV and need to garner commerce quickly, new means of TV advertising can maximise effectiveness.

Sky AdSmart for instance or programmatic advertising can target your audience to ensure that only those who would be receptive to your ad, would actually view it.

Cost-effective forms of TV advertising can accentuate the impact of lower interest rates.
Cost-effective forms of TV advertising can accentuate the impact of lower interest rates.

You do not even need surfeit inventory at your own disposal, with the continuing growth of ¬†broadcaster’s and digital set-top-box provider’s inventory can help streamline targeting and maximise effectiveness.

The apparent stagnation of consumer spending and lack of incentive to save due to the low rates of interest, has facilitated the continuing appeal TV has to start-ups and SMEs.

When combined with the cost-effectiveness and measurability of online, your overall advertising campaign can be one that can reach unparalleled heights.

Space City is continuing to produce ads that utilise revolutionary and evolutionary techniques, merging them together to the ultimate advertising package.

Given the importance to some businesses to simply refresh previous amid the stagnation of consumer spending, with increasing living costs, but interest rate reduction, Space City provides a full versioning and re-editing service.

This means that the costs of producing entire ads are eliminated, with ads simply refreshed with state-of-the-art aesthetics and improved graphics to suit your prerogative.

Contact the team now and see how economic uncertainty can still mean profit certainty with TV and Space City.


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