New study shows TV ads deliver the most profit TV ROI is 22% higher than 5 years ago, despite recession.
Amid gloomy economic forecasts, a new study has revealed how advertising performed during the economic downturn in recent years. It shows that TV advertising created the most profit (an average return of £1.70 for every £1 invested), and that its return on investment (ROI) has increased by 22% in the last five years.
Payback 3, an independent study commissioned from Ebiquity by Thinkbox, is an econometric analysis of 3,000 ad campaigns across nine advertising sectors between 2006 and 2011. It compares, on a like-for-like basis, the sales and profit impact during the last five years of five forms of advertising: TV, radio, press, online static display and outdoor.
Other key findings include :
•TV advertising is 2.5 times more effective at creating sales uplift per equivalent exposure than the next best performing medium (press);
•TV advertising has a ‘halo effect’ across a brand’s portfolio. 38% of TV’s sales effect is felt by products not directly advertised;
•TV’s ‘halo effect’ also makes other forms of advertising work harder;
•TV is responsible for 71% of attributable sales in Ebiquity’s database, but only accounts for 55% of spend.