Long Term Effects Reveal High ROIs of TV Advertising

This paper looks at the effect of television on return on investment (ROI) and proposes ROI Analyzer: a sustainable model linking TV advertising and sales that takes into account long-term aspects of brand loyalty.

Long Term Effects Reveal High ROIs of TV Advertising

Guido Modenbach and Raimund WildnerSevenOne Media and GfK Verein

Background/focus of study

Advertisers would likely agree wholeheartedly on the value of television advertising to sell a brand. And yet we still lack truly conclusive evidence of the power of this medium when it comes to sales. The effect of TV on "soft," communicative impact indicators such as brand recognition or advertisement recall is uncontested, but the results of studies looking at the return on investment (ROI) have so far been rather disappointing: The ROI is often just 15 or 20...

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