TV ads deliver most profit

Amid gloomy economic forecasts, a new study from Ebiquity by Thinkbox has revealed how advertising performed during the economic downturn in recent years. It shows that TV advertising created the most profit (an average return of £1.70 for every £1 invested), and that its return on investment has increased by 22 per cent in the last five years.

The study is an econometric analysis of 3,000 ad campaigns across nine advertising sectors between 2006 and 2011. It compares, on a like-for-like basis, the sales and profit impact during the last five years of five forms of advertising: TV, radio, press, online static display and outdoor.

Other key findings include:
– TV advertising is 2.5 times more effective at creating sales uplift per equivalent exposure than the next best performing medium (press);
– TV advertising has a ‘halo effect’ across a brand’s portfolio. 38 per cent of TV’s sales effect is felt by products not directly advertised;
– TV’s ‘halo effect’ also makes other forms of advertising work harder;
– TV is responsible for 71 per cent of attributable sales in Ebiquity’s database, but only accounts for 55 per cent of spend.

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