Big Sales Gains Follow TV Ad Spending Hikes

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A new study found the biggest gains in products sales were registered by marketers that increased their TV spending.

The research by Standard Media Index and Research Measurement Technologies saw significant spikes in sales for brands that had reduced their TV spending in favor of digital but subsequently shifted ad dollars back to TV over a two year period.

The study covered 100 major advertisers from first quarter of 2014 to first quarter of 2016.

The biggest gains were registered by a dozen advertisers, who saw sales revenue jump by 14.6% on average. Those companies increased their ad spending by 25.8%.

For three consumer packaged goods companies in the study that became aggressive digital marketers, sales rose 4.68 times their incremental TV ad spending after they switched back to TV.

SMI and RMT plan to release the complete study next week at the Advertising Research Foundation conference in New York.

Jon Lafayette
Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.