Bad News For TV - Study Shows Internet Advertising More Effective Than TV For Packaged Goods
By Tom Foremski - August 17, 2009
comScore and dunnhumbyUSA today released the results of studies showing online advertising is as effective as TV advertising in building retail sales of consumer packaged goods.
Over the course of twelve weeks, online ad campaigns with an average reach of 40 percent of their target segment successfully grew retail sales of the advertised brands by an average of 9 percent. This compares to an average lift of 8 percent for TV advertising as measured by Information Resources, Inc. (IRI)
The study looked at advertising campaigns for product categories that included: "cereal, cookie mixes, pizza, juice drinks, snack bars, pasta, tea, deodorants and toothpaste."
Foremski's Take: This is bad news for TV advertising because Internet advertising is so much less expensive, and it is slightly more effective as shown in this study (9 per cent versus 8 per cent lift.)
What the study doesn't appear to show is how much online advertising was done, and the formats of the advertising.
This will mean a lot more advertising heading from TV to online advertising because of the ability to track the ads, and also to save large amounts of money. This will accelerate the revenue decline at TV stations.
More information here: http://bit.ly/34dQxU
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August 17, 2009 | Permalink | Comment | Subscribe to SVW
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Comments (2)
It seems the real meaning of this research is not Internet vs TV advertising. If the two are separate, it's only temporary. Internet TV advertising is projected to explode. The study seems to merely show that online advertising for consumer packaged goods can be effective and measurable for any advertiser on the Internet, even for TV. Hernan Lopez, the TV executive at Fox International Channels and dot.Fox Networks appears not to be panicking. In fact, he sounds delighted: "While there is no doubt that advertising can increase sales, measuring that effect is very hard to do. comScore and dunnhumbyUSA’s robust methodology has without question achieved that goal and puts online display in the select club of media that can generate measurable sales in the short-term and build brands in the long term."
Posted: August 24, 2009 8:56 AM
Jason: Good point. The Internet can carry all other forms of media: newspapers, radio, TV, magazines. And therefore it can transfer the properties of measurement that they lack currently. However, will the cost of Internet advertising increase? Or will it reduce the cost of all other forms of advertising. I think the latter.
Posted: August 24, 2009 9:38 AM