A new study by marketing-analytics company MarketShare, backed by Turner Broadcasting and media agency Horizon Media TV, says TV has maintained its effectiveness at driving advertiser key performance indicators (KPIs) over the last five years.
While other media effectiveness has dropped by 10.3% for online media on average, and 22.5% for offline media (excluding TV), TV has only slipped 1.5%. This research was compiled looking at 2012-2014 versus that of 2009-2011.
All media witnessed an overall 11.5% decline during this period, which the study attributed to fractionalization of media, due to new channels/platforms in the new digital world.
In looking at similar spending levels, MarketShare says performance lift from television is seven times of paid search and three times of online for various industries, such as automotive, consumer products companies, retail, telecommunication, and financial services.
The study points to one telecommunications media plan noting if the advertiser had reduced its television budget by 20% and re-allocated those funds into online display, the advertiser would have experienced a 7% decrease in sales.
“We funded this analysis due to advertiser concern that TV effectiveness in driving ROI had decreased,” states Howard Shimmel, chief research officer, Turner Broadcasting.
Adds Eric Blankfein, chief of WHERE at Horizon Media: “Horizon’s proprietary suite of planning tools and analytics has uncovered many of these hypotheses, and we are glad to see them drawn out through this detailed analysis served to confirm our perspectives. It answers many of the questions our clients bring to us every day.”