TV adverts create 71% of advertising-generated profit according to Thinkbox’s latest study, ‘Profit Ability: the business case for advertising.'
The study also revealed that all forms of advertising create profit to varying degrees in both the short and long term, with, on average, advertising creating a total profit return on investment (ROI) of £3.24 per £1 spent over three years.
The study commissioned Ebiquity and Gain Theory to work on the study, based on both businesses’ independent evaluation of advertising performance and effectiveness for hundreds of brands.
The study analysed more than 2,000 advertising campaigns across 11 categories, looking at the impact on short-term profit (within three to six months of a campaign finishing), and combined these learnings with results for profit generated over the longer term (up to three years) to determine total profit return.
Andrew Challier, chief client officer, Ebiquity said: "The study is important because it shifts the emphasis away from the ROI number ‘arms-race’ to a more responsible approach that talks about the scalability of ROI by media channel, and the impact that this has on profit generation."