TV generates trust, renown for a brand, increases profits

Juan Fernandez Gonzalez | 12-11-2013

TV may be going through some changes, but it's still able to build a strong brand, generating trust and renown for the product, and increase returns, says the latest report from Kantar Worldpanel and Atresmedia.

The research studied the efficacy of advertising on TV and its relation to sales.

This is the first time that this kind of research has been carried out in Spain, analysing brands globally through different advertising campaigns.

In the short-term, product sales increase quickly after a TV ad campaign, says the report. New clients are captured, meaning a 10% sales increase and a 7% growth of the market share. At the same time, own-brands of the same product experience a 3% drop in their share.

Over 60% of the campaigns studied reached an 18% increase in penetration rate and an ROI of 1.20 for every 1 invested.

The weaknesses shown up in the research are related to the long term. A month after a TV campaign, the generic brands have usually recovered their sales. On the other hand, a stable investment in advertising brings great results for brands, increasing the ROI to 1.58 for food-related products and 4.34 for beauty products.

The research was compiled from Kantar Media's TV audience figures and a survey of over 8,400 Spanish homes and 4,000 people. Over 40 different ad campaigns were meticulously analysed for the report during first half of 2013.