The study -- conducted with IRI, the consumer products/healthcare marketing analytics company -- noted that consumer product marketers can spend as much as 66% of marketing dollars on promotion. Shifting 10% of that money can return in return on investment (ROI) gains of 10% to 25%.
Turner/IRI research looked at three years of data, across 62 brands representing $20 billion in sales and $3 billion in marketing spend across food, beverage, health care, beauty and home-care marketers.
The research indicates that the results are more dramatic when separating short-term and long-term ROI versus overall promo spending. Short-term ROI of media “is comparable to standalone promotional efforts.” But long-term ROI media spend can be two to three times that of promotion. Beverages, food and healthcare in particular can see major results.
For example, every dollar spent on short-term media advertising for a beverage marketer produced an ROI of $1.21 -- comparable to promotion spending, which yielded $0.96. But this amount rose substantially when looking at long-term media spending, where for every dollar spent, it produced $2.54 in ROI.