decreasing tv ad 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 by 25% to 75% from the prior year.
Key Highlights include:
- 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.
For every dollar decline in ad spend, brands lost 3x that amount in return.