Study: Increased TV Spending Yields Higher Sales For 12 Large Marketers

by Wayne Friedman, Yesterday, 3:32 PM                                            

The recent increase in TV spending -- after a period of decline -- was a key factor in driving sales for a dozen of large advertisers, according to a new study. Over a two-year period, seven consumer product group [CPG] brands and five non-CPG brands saw revenues jump by 14.6% on average, according to research from Standard Media Index (SMI) and Research Measurement Technologies [RMT].
These 12 advertisers averaged a 25.8% rise in their TV ad spend over the period. Three CPG companies averaged a sales increase of 4.6 times the incremental TV ad spend after they switched dollars back to TV.

Working with consumer research company IRI and public corporate financial earnings data, SMI and Harvey’s research analyzed media spend shifts among 100 major advertisers from the first quarter 2014 to first quarter 2016.

The research confirms recent reports of advertisers that have seen declines in the return on investments from increasing digital media spending and lower TV spending. Many have now reversed their TV-digital media spending allocations.

SMI captures 70% of total national U.S. agency spend from the booking systems of global media holding groups, as well as leading media independents. RMT is a new media research consultancy, its chairman and co-founder is research veteran Bill Harvey.