Performance TV for E-commerce: A Comprehensive Guide

As young e-commerce brands, you’ve likely tapped into the power of digital marketing channels like Meta, Instagram, TikTok, Influencers, and Google. These platforms have been great for reaching your initial customer segments and driving growth. However, there comes a point where these channels hit a saturation point—usually signaled by increased CPMs and CACs nearly doubling from when you first started. Finding new, untapped audiences becomes essential. This is where Performance TV can provide e-commerce brands that extra boost of reach and unlock new growth opportunities.

What is Performance TV?

Performance TV refers to the use of linear TV advertising to achieve specific, measurable outcomes such as website visits, app downloads, or sales. Unlike traditional TV ads, which primarily focus on brand awareness (think brands like Coke, Mercedes, or Pedigree), Performance TV aims for direct responses and measurable results, making it similar to digital performance marketing channels like social media or search ads.

Benefits of Performance TV for E-commerce

Television remains one of the most effective ways to reach a massive audience quickly. While it might seem like a channel reserved for large brands with hefty budgets, advancements in tracking and attribution technology have made TV accessible and measurable for performance-driven e-commerce brands.

Here’s why you should consider adding Performance TV to your marketing mix:

Broad Reach: TV can reach audiences that are not as active on digital channels, expanding your customer base.
Measurable Impact: Modern tools allow you to track direct responses and conversions from TV spots, just like digital ads.
Brand Building and Performance (aka Gladformance®): TV not only drives immediate sales but also enhances brand awareness, increasing customer lifetime value.

Steps to Implement Performance TV

Define Your Goals: Identify your target audience and what you aim to achieve with your TV campaign. Are you looking for immediate sales, app installs, or long-term brand awareness?
Create Compelling Content: Your TV spot needs to be engaging and aligned with your brand. It should include a clear call-to-action (CTA) directing viewers to your website or app.
Select the Right Channels: Choose TV channels that align with your target demographic. We have a database to help pick out the most relevant channels with the strongest combination of affinity and reach. Mix niche channels for precise targeting with broader channels for scale.
Optimize Timing:
Dayparts (specific times of the day) can significantly impact your campaign’s effectiveness. Daytime slots might be more cost-effective and reach engaged viewers, while prime-time slots could offer broader reach at a higher cost.
Measure and Adjust: Use tracking tools to measure the performance of your TV spots. Look at metrics like cost per acquisition (CPA), response rates (RR% or DR%), and overall return on advertising spend (ROAS). Adjust your strategy based on what’s working best. It is important to make sure the tracking is set up with confidence in order to run measurable TV campaigns.

Finding Out What Works

Within a week or two of your TV campaign, you should start seeing trends in your data. Identify the dayparts, channels, and creative variations that yield the best response rates and the lowest CPV/CPA/CPx. Reallocate your budget towards these high-performing segments while balancing the need for long-term brand growth. (Here’s a case from Outfittery, where we managed to improve performance in style.)

Staying Realistic

Remember, TV advertising is part of a broader marketing strategy. It complements your digital efforts and helps you capture new demand. Be prepared for external factors that might influence your campaign, such as seasonal changes, aggressive competition, or unexpected events.

Test, Learn, and Grow

Start with a test phase, optimize based on the initial results, and then grow your campaign for broader reach. This iterative approach ensures you maximize your TV advertising effectiveness while managing costs.