Report: TV Is Still the Most Effective Ad Medium

LONDON: New research from Thinkbox in the U.K. reports that television is still the most effective advertising medium, creating more profit per pound spent than any other platform.

Thinkbox, the marketing body for commercial TV in the U.K., commissioned Ebiquity to conduct the study of more than 4,500 ad campaigns over the last seven years. The average return for a TV ad was £1.79 ($3) for every £1 invested ($1.70), as compared with £1.52 for radio ($2.60), £1.48 for press ($2.50), £0.91 ($1.50) for online display and £0.37 (60 cents) for outdoor advertising.

Ebiquity recommends that finance and retail brands should spent at least 60 percent of their ad budgets on TV; fast-moving consumer goods should spend significantly more on television.

The research also found that television has become more effective over the last three years, driven in part by “multi-screening,” where viewers can act instantly once they see an ad (for example, search for a product online). Ebiquity also found that advertisers have a more sophisticated understanding today on how to use TV as a marketing platform. Moreover, the new golden age of television is creating a better environment for advertisers. The cost of TV advertising has also fallen in recent years.

“TV has consistently demonstrated the highest return on investment over a seven-year period, during a period of unprecedented economic and technological upheaval and change,” said Andrew Challier, effectiveness practice leader at Ebiquity. “TV is continuing to demonstrate its value as we see the first real signs of economic growth.”

Neil Mortensen, the research and planning director at Thinkbox, added, “Advertisers know that TV advertising works because they see the effect it has on sales and profit—both in the short and long-term. But it is essential we continue to prove it and explain why TV is such an effective investment.”