TV the Most Effective Advertising Medium?

A new study has been conducted by a group called Thinkbox, exploring the effectiveness of television advertising. Webwindows will discuss the findings of the report and talk about the mediums status amongst other forms of advertising in terms of their effectiveness.

The Report

The study analysed over 4,500 advertising campaigns dating back to 2008. They found that the average television advert provides a return of £1.79 for every pound invested between 2011 and 2014. This is an increase of 9p from the £1.70 return in the period from 2008-2011.

TV advertising also created 33% more branded online searches during the earlier period against the later. This is important information if you are implementing an online advertising campaign.

Webwindows can announce that TV advertising proved to have the highest return on investment (ROI) of any form of advertising over the period the survey was conducted. The ROI was driven by an the increasing sophistication of advertisers creating ad opportunities across various media platforms, higher quality content and the falling price of adverts.

The finding of the report was delivered at the annual Payback 4 Summary of TV, radio, press, online display, and outdoor advertising. Each medium was compared on a like-for-like basis. The report found that TV advertising was twice as effective as the next best performing medium, which was press or newspaper advertising. Webwindows recommends choosing a marketing campaign that is best for you - we will work with you to look at your target audience, your budget and resources and decide on the best marketing strategy which will best suit you.

Halo-Effect

The report also showed that TV advertising benefits from a ‘halo-effect’.  This sees product sales boosted for items that are not directly advertised. Also known as the ‘multiplier effect’, this increases the effectiveness of other campaigns running in tandem.

The Effectiveness Practice Leader at Ebiquity said ““TV has consistently demonstrated the highest ROI over a 7 year period, during a period of unprecedented economic and technological upheaval and change. TV is continuing to demonstrate its value as we see the first real signs of economic growth.”

Revenues

UK TV advertising revenues increased by 3.5% in 2013 to reach an all-time high pf £4.63 billion. Webwindows announced that advertising spend will reach £20 billion next year. The figure for this year is expected to rise again due to the 2014 World Cup in Brazil.