New UK research from TNS shows that raising adspend during a sluggish economic climate pays off.
The survey -- which tracked 100 brands for two years starting July 2001 -- found an average sales rise of 10% in the second year at companies that hiked their ad budgets, compared with a climb of just 3% at firms that cut adspend. Companies that stopped advertising altogether, however, saw sales slump 9%.
"This research," declared Andrew Roberts, TNS group technical director, "covered a large number of brands across a very wide range of categories and demonstrates that even in mature markets brands can achieve substantial growth by the application of classic advertising and marketing activity."
Television boasted the best return on investment of any medium. Brands that increased their outlay on TV in the second year were 50% more likely to end up in the top third of companies by sales. Multichannel TV proved particularly effective: brands hiking the proportion of their budgets going to non-terrestrial stations saw sales jump 16%.
Which will doubtless be music to the ears of multichannel players BSkyB, Sci-Fi, Flextech, UKTV, IDS, Turner Broadcasting and Viacom Brand Solutions -- all of which commissioned the survey.
Data sourced from: mad.co.uk; additional content by WARC staff