Industry body ThinkTV has released its latest research on the impact of TV advertising on short and long term return on investment (ROI).
The study, in partnership with Monash University professor Peter Danaher, looked at the campaign performance of 60 brands with a collective annual turnover of $23 billion and an annual media spend of $450 million.
For the 60 participating brands, it found that for every dollar spent the average return on investment for total TV was $18.30 in the longterm. Total TV free-to-air, subscription and BVOD.
The next highest was social, which only looked at Facebook and some Instagram advertising, with $14.10, followed by out-of-home with $13.70, digital advertising with $13.20 and search with $12.40.
For the shortterm, less than three months, total TV delivered ROI of $4.30 for every dollar spent, behind search with $4.50. The next highest was digital video with $4.20, and then social, mostly Facebook, with $4.10.
“TV's strength in driving business impact over the longer-term is well established, however, this research shows that with its broad reach, high levels of attention and time spent viewing, the platform also initiates a strong demand-response from the very first exposure,” Danaher says.
“The findings confirm TV is a powerful medium for driving sales demand over any timeframe.”
The research also indexed all media channels and found TV to be three times better at driving incremental sales than any other channel, including OOH, radio, search, digital display, print, social , digital video and cinema.
“2020 tested marketer’s agility with sales windows opening and closing and market conditions changing with little notice,” says ThinkTV CEO Kim Portrate.
“As 2021 begins, advertisers are in need of quick sales to make up for lost time or a fast start to their quarterly sales period. This research proves TV – potentially under-allocated in marketer’s short-term campaigns – is the perfect partner to help make the most of the new year.”
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