How can advertising be used to deliver long term growth?
THE VALUE OF TAKING THE LONGER TERM VIEW
In one campaign for a major multinational client, the long term return per GRP from the brand's advertising was calculated to be almost six times the short term return. The short term return (over the first eight weeks) was small; not enough to justify continued investment. But when we add in the extra returns, generated after the first eight weeks, the picture becomes far more positive:
Long-term modeling case history total return/GRP
In general the ratio of long term sales to the corresponding short term impact is very variable. The overall average is between 2 to 3. However, across 94 ads we analyzed, 11 showed no long term effect; while, for 20 percent of those that did, the long term effect is at least five times greater than the short term impact: