So What happens when advertisers cut back on advertising?
by Wayne Friedman, 7 hours ago
For every dollar saved on reduced TV spending, some advertisers could lose three times the amount in sales.
A study by TiVo Research, and customer engagement consultancy, 84.51°, says a study of 11 of 15 package-goods brands that cut their TV advertising budgets, lost a combined $94 million dollars in year-over-year (2014 to 2013) spending.
The study was sponsored by A+E Networks and Turner.
The average lower TV advertising spending for the 11 brands was $3.1 million; with the average sales loss $8.6 million.
The average decline in household quarterly reach was 14 million -- 79% in 2014 to 60% in 2013. All 15 brands posted quarterly reach declines.
Average on-air brands reached only 25% of its purchasers in 2013, down from 35% in 2014.
The study refers to Standard Media Index estimates that overall TV advertising spend dropped 2% year-on-year in the final quarter of 2014 -- national broadcast dropped 2% to $4.8 billion, cable networks slipped 1.6% to $6.8 billion.
Research was based on 84.51°’s in-store sales data with TiVo Research’s viewing for over 2 million TV homes. Both data panels are combined to create an anonymized matched panel of over 400K households with both exposure and purchase data, providing a single-source view of the consumer.
NOTE: Tell your clients that consistency continues to build brand equity and increases net revenue while pulling back changes the dynamics. Philip Jay LeNoble, Ph.D. CA
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