Despite all the hype with regards to digital advertising and cutting ties with the more traditional ad formats, TV is still a hard ad medium to beat according to a new report. A recent study carried out by Neustar commissioned by Turner Broadcasting and Horizon Media found that for a $1M investment, television’s lift is consistently seven times better than paid search and five times better than online display advertising across a broad list of advertising categories. In addition the study also found that the lift from TV campaigns over 2010-2016 provides a lift five times better than online display ads.
“Dollar for dollar, TV provides the most scale and delivers the highest returns on ad spend from both a sales and awareness perspective,” the report said. “It’s important to note that even TV will reach a saturation point, and the next marketing dollar should be spent elsewhere. To ensure an optimized marketing mix, advertisers should adopt a data-driven approach that can inform the ideal media allocation across all channels based on all internal and external market conditions to meet their performance goals.”
This study comes in a timely fashion as media executives and networks negotiate ad deals for the upcoming TV season. TV networks have bashed digital video ads for having an array of issues including viewability, bot fraud and ads appearing next to video content that is hateful and overall inappropriate which ultimately hurts the brand.
Another study by Neustar MarketShare, a leader in advanced marketing analytics, evaluated data from thousands of marketing mix models across a variety of industries, to gauge the effectiveness of TV advertising in terms of reach, lift, ROI and efficiency when compared to a variety of other media channels.
“Overall, our results show that despite dramatic advancements in technology, new digital platforms, and changes in consumer behavior, TV continues to be the best vehicle to deliver a brand’s message seen by a large audience,” the report said.
“Our analysis indicates that marketers should not limit rapid analytics-driven optimization only to digital marketing,” the report said. “Leveraging high-frequency data to glean quicker performance insights can help advertisers reallocate resources by TV type, network, creative, and day part to significantly impact results.”