TV Advertising Comes Out Top In Terms Of Sales Uplift
Television advertising delivers more powerful sales benefits than any other medium, according to new research from the Sales Effects Project.
The research, commissioned by a variety of groups including BSkyB, IDS, Flextech, UKTV and Viacom Brand Solutions, examined media expenditure and actual purchasing data over two consecutive years in order to identify the impact of advertising exposure on sales of more than 100 brands.
It shows that on average brands that increased their media spend year on year achieved a 10% increase in sales, while the average increase amongst brands which reduced their media spend was 3.3%. Those which stopped advertising altogether recorded a sales decline of 9%.
The research revealed that brands which increased their media spend in 2002 to 2003 were 40% more likely to be in the top performing third of brands, compared to those which decreased media spend during the same period.
An increased spend on television advertising has the most pronounced effect on sales and brands which spent more on television advertising in 2002 to 2003 recorded an average 19% upturn in sales.
Multi-channel viewers are shown by the study to be particularly responsive to advertising and the research revealed that brands which increased their advertising across multi-channel networks saw sales increase by 16%.
Commenting on the research, Andrew Roberts, group technical director at Taylor Nelson Sofres, said: “This research covered a large number of brands across a very wide range of categories and demonstrates that even in mature markets brands can achieve substantial growth by application of classic advertising and marketing activity.”
Julian Dobinson, head of research at Sky Media, added: “SFX provides powerful evidence of the sales impact of television advertising and the competitive advantage created by exposure to multi-channel viewers. The clear message for advertisers is that television works and that multi-channel works best, creating measurable growth in return on investment for brands which increase multi-channel spend.”
Recent research from Channel 4 shows that television viewers are as attentive to commercial breaks as they were five years ago, despite a marked increase in the number channels on offer(see Viewers Continue To Tune In To Television Advertising).
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