Digital advertising ROI - better returns than TV

A recent research report by GfK has confirmed that advertising using online channels generates considerably more short-term sale revenue than TV, press and outdoor campaigns.

GfK have calculated that the average short-term online sale for digital advertising is 75p, which compares favourably to 66p for press, 53p for outdoor and, a low 43p for TV.

The GfK Media Efficiency Panel studied eight major FMCG campaigns to measure cross-media advertising on short-term sales.

These findings are helping brands understand that TV is not necessarily the best channel for their advertising. Digital is not an answer on its own but these findings indicate that it can compete with other channels in regards to audience reach. Digital campaigns reach a total of 33% of the online population, with press reaching 40% and outdoor trailing on 30%.

Shuvo Saha, Industry Director FMCG & Healthcare, Google, says that GfK UK “have proven the sales effectiveness of search, display and YouTube activity in integrated multimedia campaigns and provided invaluable insights about consumer behaviour across offline and online channels."

Babita Earle of GfK states that “With online digital advertising spend set to increase significantly over coming years, it is vital that media planners have quality information and data so they can fully understand the best ways to optimise ad spend, both online and offline. The findings of this new study will help marketers re-evaluate their budgets to take advantage of the efficiencies delivered by online digital advertising.”

Purple Frog have long been advocates of digital channels and digital advertsing, and not just for standard broadcast advertising. The digital and online environment creates the opportunity for brands to engage with consumers and buyers. It brings back the arts of listening & understanding. Customers have long been regarded as targets to bombard with information, what brands really need to do is understand their issues and concerns and solve these, digital channels offer this opportunity. Digital alone may not be the answer but it is increasingly becoming more important and any brands that either ignore it or treat it lightly will be left behind by their competition.