ThinkboxCorrecting an imbalance in channel investment could deliver a 9.3% improvement in in-year profit contribution.
That’s one of the key findings from this month’s Chart of the Month, from our latest study, ‘The Growth Gap’ by WPP Media. The research explores how, with constrained budgets, you can allocate resource to balance immediate sales with long-term brand equity.
Economic uncertainty has pushed the industry towards short-term thinking, prioritising activity that is easy to measure and cut. This has often meant equating “performance” with channels such as PPC and paid social.
However, short-termism isn’t the problem; the problem is badly executed short-termism. Equating “short-term” with “performance”, and “performance” with search and social, brands risk underinvesting in other channels that can deliver strong immediate returns, including TV, audio, and print.
The analysis shows that this shortcut can lead to a sub-optimal channel mix, even when the focus is purely on short-term payback. Correcting this imbalance alone could deliver a 9.3% improvement in in-year profit contribution.
These findings come from an analysis of 624 brands and over 7,400 different campaign scenarios.
Explore more: Download The Growth Gap report.
For all Chart of the Month's from the recent months, download the slides from the link above, this includes:
- September: TV has the broadest cultural footprint
- August: Brand building drives LLM visibility
- July: On average, brands could double their investment and still generate a profitable return, unlocking 11% headline profit growth
- June: TV has the highest share of cultural availability
- May: 30-second TV ads consistently account for half of all impacts
- April: TV advertising is the most trusted medium
- March: Total TV is fundamental for getting ads seen
- January/February: We feel most relaxed when watching TV
- December: TV is the battery that charges other media