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Thinkbox study reaffirms TV as most effective advertising medium

A new study exploring the effectiveness of television advertising has re-affirmed the medium’s premier status amongst advertisers in terms of overall effectiveness.

The Ebiquity study, commissioned by Thinkbox, looked at over 4,500 ad campaigns from 2008 and found that the humble telly provides an average return of £1.79 for every £ invested between 2011-14, an increase on the £1.70 returned during 2008-11.

TV advertising also created 33 per cent more branded online searches during the latter period versus the former.

This was the highest return on investment (ROI) of any form of advertising over the survey period, driven by the rise of ‘multi-screening’ viewers, the increasing sophistication of advertisers at integrating ad opportunities across different media, higher quality content and the falling price of adverts.

The findings were delivered in the annual Payback 4 summary of TV, radio, press, online display and outdoor advertising with each compared on a like-for-like basis. This found that TV was more than twice as effective as the next best performing medium, press.

It also showed TV advertising benefits from a ‘halo effect’ which sees product sales boosted for items not directly advertised, a ‘multiplier effect’ which increases the effectiveness of other campaigns run in tandem.

Andrew Challier, effectiveness practice leader at Ebiquity, said: “TV has consistently demonstrated the highest ROI over a 7 year period, during a period of unprecedented economic and technological upheaval and change. TV is continuing to demonstrate its value as we see the first real signs of economic growth.”

UK TV advertising revenues rose 3.5 per cent in 2013 to reach an all-time high of £4.63bn and is forecast to rise again this year courtesy of the World Cup.

TV is the most effective medium

TV creates the most profit

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