TV delivers strong results in Germany

07 March 2011

NUREMBERG: More than three-quarters of TV advertising campaigns in Germany during the last 20 years have delivered meaningful business results, a study has found.

Research firm GfK analysed 160 campaigns run by FMCG brands over two decades, using data from exposed and control groups of households, and reported the typical uplift in market share reached 20% if people viewed relevant spots for a brand.

"This rise was primarily generated because the number of customers also increased by approximately 20%," the company said.

While discovering the influence of commercials remained largely reliable between 2001 and 2011, it appears the fragmenting media environment has left a mark.

"The best TV spots over the past decade generated smaller increases in market share and penetration and were not able to maintain the success of the best TV campaigns of the earlier decade," GfK stated.

"Then again, an analysis of the tests from the past five years shows that the trend has meanwhile abated and that the top campaigns are now again able to deliver stable results."

Elsewhere, the company revealed 81% of TV campaigns yielded a "significant increase" in market share.

Within this, 73% of brands had been repeatedly successful, and 27% achieved excellent results despite boasting a lower budget than the norm.

For the 19% of campaigns failing to boost sales, a lack of resources was the primary cause on 72% of occasions.

"Both the budget for television advertising and advertising pressure have the greatest impact on market share and penetration," said GfK.

"However, other influencing factors, such as creativity and an ad campaign's message, certainly also play an important role."

Data sourced from GfK; additional content by Warc staff