If I spend $500,000 on television advertising, what will I get back?

Andrew Green

In this paper, ZenithOptimedia's Andrew Green assesses whether advertising on television will return on the initial marketing investment.

If I spend $500,000 on television advertising, what will I get back?

Andrew GreenZenithOptimedia

BACKGROUND

In a study of consumer packaged goods in the US a few years ago, Deutsche Bank1 reported that TV advertising didn't work for most mature package-goods brands. It had examined 23 household, personal-care, food and beverage brands using three years of IRI sales data, controlled for price and promotions.

18% of brands generated a positive return on investment (ROI) in the short term (a year or less) from TV advertising. Less than half (45%) saw their TV investment pay off long term....

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