Decreased TV Advertising Spend Hurts Sales

A recent study by TiVo Research and 84.51° explores how changes in TV spend impact advertising effectiveness.

This independent study analyzed the business results of 15 brands who had reduced their TV advertising spend from 25% to 75% from the prior year.

Key Findings: TiVo_Research_Decreased_TV_Advertising_Spend_Hurts_Sales-5

  • Reduced TV ad spend led to a combined $94 Million loss in return for 11 of the 15 brands, accounting for 69% of the 2013 incremental sales attributed to TV advertising.
  • For every dollar decline in ad spend, the 11 brands lost 3x that amount in return.
  • The same brands averaged only a 25% weekly reach leaving 75% open to competition.
  • Reduced ad spend resulted in reach and frequency declines for 11 of the 15 brands, which led to the drop in sales/ROI.