Top 10 drivers of advertising profitability
This update to the 2006 report 'Advertising's Greatest Hits', shows that growth in digital advertising has made the science of budget allocation across channels and territories even more important in advertising's RoI.
In 2006, Karl Weaver and I wrote 'Advertising's greatest hits: profitability and brand value', an article which listed the 10 most significant factors impacting the profitability of media investments (Admap, February 2006). It was developed from our experience at Data2Decisions and borne from a belief that advertisers were focusing on the wrong things.
Back then, we were frequently asked to measure the impact of media tests around quality viewing, break ecology, target audiences and media multipliers. While these were all important, and could add a few percentage points to the return from the media investment, there were much bigger opportunities to improve the impact of advertising, which clients seemed to miss – for instance, budget setting, phasing, and biggest of all, creative quality. By tackling these more effectively, we believed marketers could easily double the return from advertising, or, in the case of creative, improve the RoI by at least a factor of 10.