Thinkbox – the marketing body for commercial TV in the UK – has revealed major new research by Gain Theory, MediaCom and Wavemaker, together with a new cross-media optimisation tool based on its findings.
The Demand Generation study is an econometric analysis of £1.4 billion (€1.63bn) of media spend by 50 brands across 10 forms of advertising over three years. It offers wide-ranging advice to marketers on how to maximise short-term advertising return without sacrificing sustained base growth.
The study has also isolated the principle variables that impact advertising effectiveness, and these have been used to create ‘The Demand Generator’, a new tool that enables marketers to determine the optimal advertising media mix specific to their business and its objectives.
The new study follows Thinkbox’s Profit Ability: the business case for advertising report from 2017, by Gain Theory and Ebiquity, which established average benchmarks for media performance. But no brand is average, so ‘Demand Generation’ takes this further. It provides practical guidance for medium-to-large advertisers, who don’t have access to their own econometric analysis, on how to maximise their media-driven returns.
Key findings from ‘Demand Generation’
Some forms of advertising are riskier than others
Most channels boost the efficiency of others, but the scale and consistency of the effect differs significantly
Within the first two weeks of a campaign, TV delivers on average 23 per cent of media-driven sales.
The Demand Generator
The new tool offers practical advice on optimal media mixes based on the key variables that influence advertising effectiveness uncovered in the research. These were identified as a brand’s
The Demand Generator also forecasts the likely business results of following its guidance, both in terms of incremental revenue/profit per year and revenue/profit return on investment (ROI).
“Often we do some research, release the findings and that’s that,” commented Matt Hill, Research and Planning Director, Thinkbox. “So it’s wonderful to create something tangible and practical based on such robust insight. We hope The Demand Generator will be a helpful springboard for the many brands that don’t already do econometric analyses of their media performance. They can tailor it to their exact needs to find the best place to start from when deciding their media mix. With marketers increasingly adopting a zero-based budgeting approach, having a tool like this should provide a great evidence-based foundation on which to build their decisions.”
“Demand Generation provides the industry with the broadest view of media performance to date,” added Jane Christian, Managing Partner, Head of Business Science, MediaCom. “It goes under the bonnet of what factors drive the optimal media plan for a brand, with The Demand Generator helping advertisers to tailor the result specifically for their brand.”