TV-advertising-is-more-effective-than-ever-3

TV advertising is more effective than ever

Download

Television is rocket fuel for brands. It is irreplaceable and nothing waiting in the wings can do what TV does. Whether in the short term or the long, it delivers the most profit at the greatest cost-efficiency and for the lowest risk. Every major study into advertising effectiveness – including those commissioned by competing media – agrees that TV outperforms all others.

‘Profit Ability: the business case for advertising’ (2017), by Ebiquity and Gain Theory, found that television advertising:

  • Is responsible for 71% of total advertising-generated profit at an average profit ROI over 3 years of £4.20 per £ spent, the highest ROI of any media
  • Is the most effective short-term advertising, responsible for 62% of all advertising-generated profit in the short term at an ROI of £1.73, again the highest of any media
  • Is the safest (lowest risk) ad investment, with the highest likelihood of profit return (70% likelihood over 3-6 months; 86% over 3 years)

The IPA’s ‘Media in Focus’ (2017), by Les Binet and Peter Field, revealed that:

  • Investing in TV increases effectiveness by 40%, making it the most effective medium
  • TV advertising best at generating top-line growth that drives profit, with a 2.6% average market share point gained per year when using TV advertising
  • TV advertising is becoming more effective due in part to growing synergies with online, especially online video
  • Between 1980–1996, adding TV to a campaign led to an average 12% increase in business effects. This increased to 40% during 2008–2016
TV-advertising-works-Slide1

TV-advertising-works-Slide2

TV-advertising-works-Slide3

To download slides, click the button at the top of this page.