NEW MARKETING STUDY REVEALS TV IS STILL ESSENTIAL FOR DRIVING COMPANY SALES
MarketShare Partners, in Collaboration with Fox Broadcasting Company, Releases Study on Television’s Continued Importance in the Media Mix
A new study released today by MarketShare Partners (MSP), an industry-leading marketing analytics firm, in conjunction with Fox Broadcasting Company (FOX), reveals that television remains a central driver of sales results for major advertisers. The independent study was based on data from hundreds of marketing-optimization engagements and utilized Compass?, a proprietary software application created by MSP based on sophisticated marketing science and real-life business intelligence, to understand the impact of each marketing driver on sales.
The study highlights how television advertising works to influence other media vehicles by quantifying both the direct and indirect effects of advertising on sales lifts.
FOX engaged MSP to answer the question of whether television’s effectiveness has been impacted by newer marketing media, and to discuss how marketers can better leverage data to fully address TV advertising’s entire role in driving sales and to make better-informed decisions about marketing budget allocation.
MSP identified a series of Sales Impact Benchmarks that consistently hold true across relevant client engagements, and found that, across a broad range of industries, television remains one of the most effective marketing vehicles overall.
Among key supporting conclusions:
- Within marketing communications outlets, television is the primary contributor to building and maintaining brand equity because of its consistent ability to convey the emotional aspects of brand identity to the largest audience. Want to learn more about the importance of branding?
- TV has the highest efficiency in delivering sales effects compared to other media drivers in a plan, even if the latter are at similar spending levels, because of its direct contribution and its indirect influence on other media.
- In addition to its direct impact on driving sales, TV’s influence on the effectiveness of marketing communications throughout the purchase funnel increases the combined, total sales impact by as much as 35%.
- Comparing current MSP studies to the many completed since 2003, TV’s effectiveness has remained steady over time and in some cases improved by 10% or more, reinforcing prior industry research that states TV advertising is as effective as ever.
- TV’s effectiveness is further demonstrated by the significantly reduced overall marketing impact experienced by several brands that have either inconsistently spent or considerably reduced their TV ad spend within in the overall mix.
“Companies such as Fox Broadcasting turn to MarketShare Partners for objective, authoritative assessment of their media,” said Jon Vein, CEO and Co-Founder of MarketShare Partners. “Our finding that TV continues to be an essential part of major brands’ marketing mix is an important development for the industry and consistent with our other research.”
“Today’s consumer and advertiser are more sophisticated than ever, and it requires increasingly sophisticated tools to demonstrate the complex interaction between TV and other media in influencing brand perception and, ultimately, moving sales,” said Jon Nesvig, President of Sales at FOX. “TV generates not only awareness and familiarity among the widest possible audience but an emotional connection that’s central to building brand equity.”
MSP’s data also found that even among some likely candidates for heavy online advertising spending – businesses whose commerce is web-based or who sell digital media or products – a higher level of television spending was often recommended to help drive sales lifts and increase online activity.
This analysis highlights the critical value of TV and its essential role in the marketing mix for most major brands, further amplified by other media due to TV’s rich impact on consumer choice and opinion.
About MarketShare Partners
MarketShare Partners (MSP), the industry’s leading marketing analytics firm, is transforming the world of resource allocation and marketing measurement. Founded in 2005, MSP has helped companies of all sizes enhance their advertising and sales programs, including many of the world’s most recognizable brands. The company has developed a suite of proprietary software solutions that enables companies to determine how best to target the 21st Century consumer who, in this era of fragmentation, social media, search and DVRs, is harder to reach. By evaluating key drivers of a company’s business such as macro-economic factors, product innovation, industry and client-specific data, as well as brand buzz, MSP helps companies make smarter decisions regarding where to most effectively spend their marketing, sales and promotional dollars. For more information, go to www.marketsharepartners.com.
About Fox Broadcasting Company
Fox Broadcasting Company is a unit of News Corporation and the leading broadcast television network among Adults 18-49. FOX finished the 2008-2009 season at No. 1 for the fifth consecutive year – a feat that hasn’t been achieved since the mid-1990s. This season, FOX garnered its first fall season win ever among Adults 18-49 and continues to dominate all network competition in the key adult and teen demographics. FOX airs 15 hours of primetime programming a week as well as late-night entertainment programming, major sports and Sunday morning news.