The GroupM study, commissioned by UK TV marketing body Thinkbox, said that outdoor and print were the next-most efficient forms of advertising after TV. Online display was found to be the least efficient generator of long-term response, with TV 180% more efficient than this.
“Because of its reach and scale, TV advertising keeps generating a cost efficient level of response at higher levels of spend than other media,” said GroupM in its ‘TV Response: new rules, new roles’ study.
“Over the short to medium term the point of diminishing returns – the point at which efficiency of ad spend decreases significantly – is much lower for TV. This means there is more headroom to spend efficiently on TV than any other channel, which enables brands to drive a high volume of response and profit.”
The study said that spend on TV advertising can be 2.7 times higher than online channels before there is a significant decrease in efficiency, 2.5 times higher than print and 2.8 times higher than radio.
GroupM found that TV advertising is responsible for 44% of media-driven Facebook interactions for brands – such as ‘likes’ and ‘comments’. It also said that TV generates 31% of all media-driven sales delivered via telephone, 35% of all media-driven sales via bricks and mortar shops and 32% of media-driven sales through direct-to-site driven web traffic.