05:02 AM

Bad News For TV - Study Shows Internet Advertising More Effective Than TV For Packaged Goods

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