The current pandemic has had an unprecedented impact on the global economy; we have seen economic activity seriously reduced and, in some cases, at a standstill. Advertisers are in a highly paradoxical situation. As well as pandemic-related concerns, the media industry has been plagued by regulatory ones too, however, content consumption is at an all-time high and continues to rise year-on-year despite the easing of lockdown restrictions. Thus, decision makers are left with a tricky decision. How do you allocate your advertising budgets if at all?
Under this backdrop, SNPTV, has released their second study on the impact of various medias on sales uplift. The study analyses 5 sectors (Automobiles, Banking and Insurance, Cosmetics, Food Distribution and Large Consumer Products) over 150 econometric models and gives advertisers tangible indicators to put media strategies in place for their economic recovery. The first study was a deep dive into the Automobile sector, making this second study the first to cover all 5 sectors. Ekimetrics, the European data science leader, carried out the report.
Below you will find the study’s main outcomes:
TV should remain at the heart of a multi-media advertising campaign
In the long-term (4-24 months), TV’s ROI is €5.2 for every €1 invested and 44% of all media’s effect on sales comes from TV compared to the 32% of the total budget that is invested in it. Below is the breakdown of each sector’s sales contribution from TV and their ROI:
- Automobiles: 54% TV sales contribution and 6.4 ROI
- Banking and Insurance: 29% TV sales contribution and 5.0 ROI
- Cosmetics: 44% TV sales contribution and 1.7 ROI
- Food Distribution: 27% TV sales contribution and 1.3 ROI
- Large Consumer Products: 52% TV sales contribution and 3.0 ROI
TV has the highest saturation point
TV’s saturation point – the level where extra investment has no effect on sales – is up to 4 times higher than any other media. For numerous advertisers, TV rarely saturates before they’ve invested over €1 million on one campaign.
TV has the greatest long-term impact on an advertiser’s slogan
Without doing anything in particular, TV is able to make consumers recall an entity’s slogan for between 1 and 6 months. This varies depending on the sector and a brand’s image.
TV creates strong synergies with other types of media
TV increases other forms of media’s ROI by 15-40% when their campaigns are aired simultaneously. Furthermore, TV’s own ROI also increases to an average of 6.1 over every sector when played in conjuncture with other medias, highlighting that it is best to have a multi-media campaign strategy rather than airing campaigns in isolation.