A new study performed by ABC reveals that truth about how long term investments in different types of advertising offer differing returns and the results may surprise you. While digital advertising on websites and social media platforms may offer you a quick boost in the moment, it is actually television advertising that offers the best ROI over a longer period of time. They studied the ROI over a period of three years, and studied the “halo” effect that multimedia TV advertising has on a digital platform. They found that with the halo effect, television advertising actually improved an entire marketing campaign’s ROI by about 10%. Without television advertising, then digital campaigns had a whopping 18% less ROI over a period of three years.
The study found that without the assistance of TV advertising in your marketing mix, your paid search campaigns will have 21% less ROI, display advertising will have 19% less and short form video ads will be 7% less effective. Another thing to note from this study is that at basic spending levels, Television and digital campaigns have a similar ROI, but as the spending numbers grow, the ROI changes drastically. Solely digital campaigns have significantly less ROI. According to the study, even taking just 4% of spending from TV and moving it over to your digital budget can affect your bottom line.
“When you look at digital versus multiplatform TV, most marketers look at average ROI in the short term. They’re looking at that one-year impact, and they’re making planning decisions based on those ROIs based on one year, but there is this lasting impression that happens beyond year one, that currently most marketers don’t give credit to because they’re looking at their buying and planning decisions in the short term. It’s a pretty significant back end value for multiplatform TV advertising.” Mike Chapman, Managing Director of Accenture, the firm who completed the study and compiled the results.
How will this study affect your marketing mix?
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