TV delivers a higher return on investment (ROI) to advertisers than other media and has a far greater sales-uplift effect, according to new research in Britain.
The research – conducted for an organisation tasked with promoting commercial television to advertisers – showed that £1.70 is returned for every £1 spent on TV advertising, compared with £1.48 for radio, £1.40 for print, £1.06 for static online displays, and £0.45 for outdoor.
In terms of uplift, TV was again by far the best-performing medium, followed distantly by print. Outdoor delivered only nine percent of the uplift of TV.
The DOOH sector, however, can counter that since many examples of its medium are much closer to “out-of-home TV” than to conventional outdoor posters, they are likely to share many of the virtues of television.
These include a “halo effect” whereby TV advertising not only increases the effectiveness of related campaigns in other media, but also generates sales uplift across a brand’s whole range rather than just the products advertised. Indeed, a full 38 percent of TV-created uplift is attributable to products not specifically advertised, according to researcher Ebiquity.
Ebiquity studied 3000 campaigns over the last five years in the research commissioned by Thinkbox, the marketing body for British commercial TV, which is owned by a group of broadcasters.
It also noted that ROI for TV advertising is actually increasing because uplift effects have remained more or less constant while advertising rates have fallen. It did not, however, comment on the likelihood that this also applies to other media.
Said Andrew Challier, effectiveness practice leader at Ebiquity: “TV is weathering a perfect storm of economic downturn and increased competition from emerging media. Its unrivalled effect on sales and profit and its profound influence on other media make TV advertising both the most effective form of advertising and a powerful ally to other media and marketing mechanics.”
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