Advertising payback – is TV advertising still effective?

May 2008

The ‘Advertising payback – is TV advertising still effective?’ study is the biggest study of its kind, looking at over 10 years of data for over 700 brands in seven market sectors. It combined rigorous econometric analysis, measuring overall profitability and market shares, with a conjoint study to isolate the intangible asset of the brand alone.

The main findings were:

• On average, a £1m increase in TV marketing investment yields a £4.5m in sales.
• Out of all media, TV has the strongest correlation with large brand values.
• The larger the brand value, the more likely the business made non-TV investment, suggesting ‘synergy effects’. TV delivers its value over a much longer time frame – 45% of its total sales effect is delivered after year One.
• The key driver of channels is ‘share of voice’.