ThinkboxThis month’s Chart of the Month draws on findings from our most recent study, ‘Profit Ability 2: the new business case for advertising’, which shows that Linear TV is unmatched as the profit volume driver when considering all three speeds of payback.
Profit Ability 2 analysed the profit generated by advertising at different stages as its effects build over time. It examined four speeds of payback: immediate payback (within one week), short-term payback (up to 13 weeks), sustained payback (week 14 through to 24 months) and full payback (total payback over a 24-month period). The study brings together the vast econometric databases of client data from Ebiquity, EssenceMediacom, Gain Theory, Mindshare and Wavemaker UK, covering £1.8 billion of media investment in the UK across 10 media, 141 brands, and 14 product sectors. It is an update of Ebiquity and Gain Theory’s Profit Ability study from 2017 and offers the first post-Covid/Brexit view of advertising’s business performance.
When looking at the full advertising profit return by channel, it found that Linear TV emerges as the biggest driver of full profit volume (47%), outperforming all other channels. This is followed by Generic PPC, which performs favourably when accounting for immediate payback, however, cannot compete with the scale that Linear TV offers beyond the first week after the advertising.
For more advertising effectiveness insight, read ‘Profit Ability 2: The new business case for advertising’.
For all Chart of the Month’s from the recent months, download the slides from the link above, this includes:
- June: TV has the highest weekly saturation point
- May: TV (Linear and BVOD) accounts for over half of all ad-driven profit
- April: The TV screen drives the highest ad recall of all devices
- January: TV is a trusted medium
- December: Auditory attention more resilient to distraction than visual attention
- October/November: Auditory attention more resilient to distraction than visual attention
- September: Creativity is the biggest advertising profitability multiplier within our control
- August: Sustaining ESOV essential for brands in 2023
- July: 30 second ads deliver the greatest impact
- June: Late evenings and weekends are valuable dayparts when targeting ‘Reach Extenders’
- May: Electric/hybrid vehicles are motoring ahead in TV advertising
