Free-To-Air Ads Still Kick Digital’s Backside Says New US Survey

Man sitting on a sofa watching tv with hands folded behind his head

In good news for David Gyngell, A US study has found that TV advertising effectiveness has remained steady during 2009-2014 and has outperformed digital and offline channels at driving key performance metrics.

The study was commissioned by Turner Broadcasting and Horizon Media partnered with marketing-analytics company MarketShare. The study meta-analysed thousands of marketing optimisations used by major advertisers from 2009 to 2014.

Some of the key findings included:

TV has the highest relative efficiency in achieving KPIs

Analysing advertising performance across a wide variety of industries and media outlets including television, online display, paid search, print and radio advertising, MarketShare found that television had the highest relative efficiency at driving such KPIs as sales and new accounts.

2. TV has maintained its effectiveness over the most recent five years

TV advertising has been equally impactful in 2012-2014 as it was in 2009-2011—despite the explosion of digital media over that time. TV was the only medium to maintain its effectiveness (a 1.5 per cent decrease in five years) while the other advertising media—both online and offline—declined more than 10 per cent.

3. TV marketers can further optimise spend with high-frequency consumer interaction data similar to digital

TV advertising drives a high volume of measurable actions such as inbound calls and website visits, hence TV advertisers can utilise these interactions to quickly evaluate TV advertising effectiveness across channel group, day part, campaign, and creative. MarketShare was able to recommend a large reallocation amongst TV outlets that drove a nearly 6 per cent sales increase for a brand.

“We funded this analysis due to advertiser concern that TV effectiveness in driving ROI had decreased,” said Howard Shimmel, chief research officer, Turner Broadcasting.  “This analysis clearly demonstrates that TV ad effectiveness remains powerful and has not diminished, maintaining its leadership strength over other forms of media.”

“In spite of new and evolving media platforms and rapid changes in consumer habits, TV’s effectiveness has not been diminished,” added Shimmel.

“Our clients need our continued perspective on the effectiveness and efficiencies of video options across multiple platforms,” adds Eric Blankfein, chief of WHERE at Horizon Media. “From where I sit, as the chief of the WHERE group at Horizon, we saw the value of partnering with Turner and MarketShare to garner those perspectives and determine how OLV and TV can best serve clients across numerous business categories.  Through this partnership, we have seen the quantified contribution of television to positive business results. It answers many of the questions our clients bring to us every day.”

For more information on the report, click here.

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