TV advertising creates the most pound-for-pound profit and remains the “most effective form of advertising” according to new research.
The Thinkbox-commissioned study by media analytics firm Ebiquity found that TV gave an average return of £1.79 for every £1 invested during 2011-14.
This compares to £1.52 for radio, £1.48 for press, £0.91 for online display, and £0.37 for outdoor advertising and is up from £1.70 for every £1 invested during 2008-11.
“TV consistently demonstrated the highest return on investment (ROI) of any form of advertising over the last 7 years, a period of economic recession and major upheaval in media technology and consumption,” according to the report.
Reasons for TV’s “increasing effectiveness” including the falling cost of advertising on TV in recent years, a “golden age of TV content” and the opportunities brought about by ‘multi-screening’.
Ebiquity found that the proportion of brands featuring specific online calls to action in their TV ads increased from 2% in 2005 to 16% in 2013.
“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,” said Andrew Challier, effectiveness practice leader at Ebiquity.
Total TV advertising revenue in the UK increased by 3.5% in 2013 to reach a new record high of £4.63 billion, according to full year revenue figures provided to Thinkbox.
The study was an econometric analysis of over 4,500 ad campaigns across 10 advertising sectors between 2008 and 2014.
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