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GfK

Online advertising delivers substantially higher ROI than TV, says GfK

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By Ishbel Macleod, PR and social media consultant

October 28, 2011 | 2 min read

Online advertising delivers substantially higher ROI and sales uplift than TV and achieves reach equal to press and outdoor, according to GfK’s Media Efficiency Panel.

The panel evaluated eight major FMCG ad campaigns to accurately measure the effects of cross-media advertising on short-term sales and to assess the return on marketing investment.

One of the main findings raised is the research was that online is on average more efficient than offline at delivering short-term sales ROI, with an average ROI of 75p for all online activity compared to 66p for press, 53p for outdoor and just 43p for TV.

Online video delivered an average ROI of 81p – almost twice that of TV advertising based on current spending, with YouTube advert ROI at 84p.

It was also found that digital campaigns reach on average 33% of the online population while press reaches less than 40% and outdoor just 30%.

Babita Earle, digital strategy director at GfK, said: "With online advertising spend set to increase significantly over coming years, it is vital that media planners have quality information and data so they can fully understand the best ways to optimise ad spend, both online and offline. The findings of this new study will help marketers re-evaluate their budgets to take advantage of the efficiencies delivered by online.

"When executed appropriately online can play a significant and unique role in the marketing mix – both complementary to television, print and outdoor, but also distinct from it. Where it is utilised well, online is a very efficient means to connect with hard-to-reach consumers who tend to escape traditional advertising channels. There is little question that online should be part of future media campaigns to reach new and incremental audiences more efficiently.”

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