TV ads deliver a consistent return on investments with only 20% variance in ROIs

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 21, 2019, 12:58 PM UTC

The variance of online videos is closer to 40%, while print’s variance is almost 90%.

A Thinkbox study found that broadcaster video on demand (BVoD) and linear TV ads provided just 20% variance on their ROIs. While BVoD returns were slightly more consistent than linear TV, other mediums from online media to print fared progressively weaker.

The study also revealed that TV further enhanced the performance of ads on other mediums by at least 20%, having the highest “multiplier effect”. Print media had the next most positive influence on other channels with an average multiplier effect across all channels of 8% and cinema advertising by 13%.

TV increased sales by 2.4 times compared with print which increased sales by 1.2 times. This piece suggests that bigger businesses should invest more in TV, while smaller niche businesses should capitalise on digital media.

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