TV ads deliver best in business ROI
Joseph O'Halloran ©RapidTVNews | 13-10-2011 Despite an enduring recession that has delivered blow after blow to consumer confidence, TV adverting is proving hugely robust with ROI 22% higher than five years ago.
Indeed according to Payback 3, an independent study commissioned from Ebiquity by Thinkbox, the marketing body for commercial TV in the UK, TV delivers more profit per pound spent than other forms of advertising and even has a 'halo effect' which improves the performance of other advertising -
The research of 3,000 ad campaigns across nine advertising sectors between 2006 and 2011, calculates that TV advertising in the UK generates an average return of £1.70 for every £1 invested, and that such a healthy return on investment (ROI) has increased by 22% in the last five years. Furthermore it suggests that TV advertising is 2.5 times more effective at creating sales uplift per equivalent exposure than press ads, the next best performing medium.
Commented Andrew Challier, Effectiveness Practice Leader at Ebiquity: "TV is weathering a perfect storm of economic downturn and increased competition from emerging media. Its unrivalled effect on sales and profit and its profound influence on other media make TV advertising both the most effective form of advertising and a powerful ally to other media and marketing mechanics, both on and offline."
Ebiquity also found that TV ads’ have a 'halo effect' that can be distributed across a brand's portfolio. That is, TV is responsible for overall 71% of attributable sales in the Ebiquity database but only accounts for 55% of spend, Furthermore, 38% of TV's sales effect is felt by products not directly advertised and TV's influence also makes other forms of advertising work
Added Neil Mortensen, Research and Planning Director at Thinkbox: "Advertisers instinctively know that TV advertising works but we must make sure we continue to prove it. Ebiquity's study does exactly that. Our task now is to share this important information with businesses and show them that no other form of advertising creates more profit than TV."