MarketShare Finds Television Still Most Powerful Business Driver for Advertisers
Tuesday, June 9, 2015
According to a commissioned analysis conducted by MarketShare, a marketing analytics provider, on behalf of Turner Broadcasting and in partnership with Horizon Media, television--as part of an accurately optimized cross-channel marketing mix--remains the most effective advertising medium in today’s video age. In the meta-analysis of thousands of marketing optimizations utilized by major advertisers from 2009 – 2014, MarketShare found that television advertising effectiveness has not changed and still outperforms multiple digital and offline channels at driving key performance metrics such as sales or new accounts. The analysis also finds that TV networks’ premium digital video delivered higher-than-average returns when compared to short form video content from non-premium publishers.
In particular, the MarketShare analysis found that:
1. Across a broad range of industries, TV has the highest relative efficiency in achieving KPIs
Analyzing advertising performance across a wide variety of industries and media outlets including television, online display, paid search, print and radio advertising, MarketShare found that television had the highest relative efficiency at driving such KPIs as sales and new accounts. For example, when comparing performance at similar spend levels, television drove, on average, 4 times the sales lift of digital overall.
2. TV has maintained its effectiveness over the most recent five years
The analysis also finds that TV advertising has been equally impactful in 2012-2014 as it was in 2009-2011—despite the explosion of digital media over that time. In one example using data from a luxury auto manufacturer, TV was the only medium found to retain its relative effectiveness while other online and offline advertising mediums experienced a double digit decline.
3. TV marketers can further optimize spend with high-frequency consumer interaction data similar to digital
The MarketShare report on the analysis notes that, because TV advertising drives a high volume of measurable actions such as inbound calls and website visits, TV advertisers can utilize these interactions to quickly evaluate TV effectiveness across channel group, day part, campaign, and creative to improve TV advertising performance. Leveraging indicators such as these, MarketShare was able to recommend a large reallocation amongst TV outlets that drove a nearly 6% sales increase for a brand. In addition, due to TV’s impact as a sales driver, decreasing TV spend by too much can also have serious consequences. Using the same brand as an example, if that advertiser had reduced its TV budget by 20% and reallocated those funds in online display, sales could have experienced as 7% decrease.
4. Premium online video from broadcast and cable TV networks significantly outperforms other publishers’ video content
The MarketShare analysis points to a directional, but notable ROI gap between online video sites of Broadcast and Cable TV networks, along with those of premium topic-specific sites (such as TripAdvisor, MLB, or Bloomberg); as compared with online video exchanges (such as TubeMogul) and video distributors (such as DailyMotion).
Based on a year’s worth of data from the hospitality, retail, and financial services industries, MarketShare found that TV network sites’ and targeted sites’ online video significantly outperformed video distributors and exchanges in delivering ROI—despite the latter groups having 2-7 times the amount of impressions.
“Video consumption has radically changed over the last few years,” said Howard Shimmel, chief research officer, Turner Broadcasting. “We are aware of those shifts and Turner has a clear vision in programming content to meet the evolving viewer demands across all screens. We funded this analysis due to advertiser concern that TV effectiveness in driving ROI had decreased. This analysis clearly demonstrates that TV ad effectiveness remains powerful and has not diminished, maintaining its leadership strength over other forms of media.”
“Our clients need our continued perspective on the effectiveness and efficiencies of video options across multiple platforms,” adds Eric Blankfein, chief of WHERE at Horizon Media. “From where I sit, as the chief of the WHERE group at Horizon, we saw the value of partnering with Turner and MarketShare to garner those perspectives and determine how OLV and TV can best serve clients across numerous business categories. Through this partnership, we have seen the quantified contribution of television to positive business results. Horizon’s proprietary suite of planning tools and analytics has uncovered many of these hypotheses, and we are glad to see them drawn out through this detailed analysis served to confirm our perspectives. It answers many of the questions our clients bring to us every day.”
Shimmel went on to add, “In spite of new and evolving media platforms and rapid changes in consumer habits, TV’s ef¬fectiveness has not been diminished. TV has a significant impact in sales lift, not only by increasing awareness and consideration but also the effectiveness of other vehicles. It yields the highest efficiency in achieving advertisers’ KPIs, it offers advanced analytic techniques to optimize spend more effectively, and its digital capabilities - premium online video - are more effective than user generated and digital short-form content.”
To conduct the analysis, MarketShare utilized MarketShare DecisionCloud™, the marketing analytics platform developed by the marketing scientists, practitioners and agency executives of MarketShare, using advanced predictive analytics to connect a company’s marketing investments with its revenue and profit. Using historical data re¬lating to sales and advertising expenditures and information about the brand and its consumers, MarketShare DecisionCloud™ applications analyze the optimal marketing budget, mix and spend by media vehicle with a focus on growing revenue or maximizing profit.
A complimentary copy of the report can be downloaded here.
About Turner Broadcasting System, Inc.
Turner Broadcasting Ad Sales monetizes the company’s portfolio of leading news, sports, kids and entertainment properties through advertising and brand activations. Attracting a wide-scale audience of diverse consumers, the collection includes leading media brands CNN, HLN, TBS, TNT, truTV, Cartoon Network, Boomerang, Adult Swim, Bleacher Report and Turner Sports’ high-profile coverage of the NBA, MLB, NCAA and PGA. In addition, the company has digital sales partnerships with the NBA, NASCAR, NCAA and PGA.
Turner Broadcasting System, Inc., a Time Warner company, creates and programs branded news; entertainment; kids and young adult; and sports media environments on television and other platforms for consumers around the world.
About Horizon Media
Horizon Media, Inc. is the largest and fastest growing privately held media services agency in the world. The company was founded in 1989, is headquartered in New York and has offices in Los Angeles, San Diego, and Chicago. Horizon Media was chosen as 2011 Independent Media Agency of the Year by Mediapost, 2010 U.S. Media Agency of the Year by Adweek, Brandweek, and Mediaweek as well as by Ad Age and as one of the world’s ten most innovative marketing and advertising companies by Fast Company in 2011. In 2012, Bill Koenigsberg, President, CEO and Founder, was honored by Advertising Age as Industry Executive of the Year. Most recently, in 2014, Bill Koenigsberg was named 4As Chair of the Board and is the first person from a media agency to hold this prestigious position in the 100 year history of the 4As, the marketing industry’s leading trade association.
The company’s mission is “To create the most meaningful brand connections within the lives of people everywhere.” By delivering on this mission through a holistic approach to brand marketing, Horizon Media has become one of the largest and fastest-growing media agencies in the industry, with estimated billings of over $5.2 billion and over 1100 employees.
The company is also a founding member of Columbus Media International, a multi-national partnership of independent media agencies. For more information, please visit horizonmedia.com.
MarketShare helps marketers grow revenue. Combining advanced analytics technology, scientific leadership and deep domain expertise, MarketShare enables large companies to measure, predict and dramatically improve Marketing’s impact on revenue—typically generating a 20%-30% improvement in marketing effectiveness and 3%-4% revenue increase, yielding a 3x-50x first-year ROI. Widely considered the market leader, MarketShare helps direct tens of billions of marketing investment dollars globally. To learn more about MarketShare, visit www.marketshare.com. For further details on MarketShare’s ever-growing list of world class partnerships for distribution, knowledge integration and execution, visit www.marketshare.com/company/partners.