How marketing-mix modeling helped AT&T boost its ROI from TV

Geoffrey Precourt

For years, marketers have assumed that TV sponsorship programs are a cost-effective way of keeping a message in front of highly-targeted audiences.

A new AT&T Wireless study, however, challenges that notion. While allowing that sponsorship may, in fact, drive more short-term sales than broadcast network or cable, the wireless carrier contends that the premiums demanded by such initiatives may be higher than their effectiveness would justify.

Moreover, by reallocating its television advertising dollars through granular media-marketing modeling, the company has been able to increase the efficiency of its television spend by more than 20%.

Though the notion of sponsorship inefficiency flies right in the face of marketing lore, Damon Samuel, lead manager, AT&T Mobility Marketing Science and Insights, told delegates at the Advertising Research Foundation's Audience Measurement 8.0 conference that the finding was grounded in deep-dive analytics.