Study: TV Ads Deliver Most Profit

LONDON: A new study has found that TV advertising delivers the best return on investment (ROI) of any advertising medium, with ROI that is up 22 percent over the last five years.

The Playback 3 independent study, commissioned from Ebiquity by Thinkbox, analyzed 3,000 ad campaigns across nine advertising sectors between 2006 and 2011. The research found that TV ads delivered an average return of £1.70 for every £1 spent. Competing media showed an ROI of £1.48 for radio, £1.40 for press, £1.06 for online static display and £0.45 for outdoor advertising.

TV consistently outperforms other media in generating sales, and is on average 2.5 times more effective than the equivalent exposure in the next best performing medium.

The survey also found that TV has a "halo effect" on products not directly advertised, such as other products in a brands portfolio. The findings show that 38 percent of TV advertising’s effect is felt by products not directly advertised. The "halo effect" also makes other forms of advertising work harder.

Andrew Challier, the effectiveness practice leader at Ebiquity, said: “TV is weathering a perfect storm of economic downturn and increased competition from emerging media. Its unrivalled effect on sales and profit and its profound influence on other media make TV advertising both the most effective form of advertising and a powerful ally to other media and marketing mechanics, both on and offline.”
 
Neil Mortensen, research and planning director at Thinkbox, added: “Advertisers instinctively know that TV advertising works but we must make sure we continue to prove it. Ebiquity’s study does exactly that. Our task now is to share this important information with businesses and show them that no other form of advertising creates more profit than TV.”