Brands Should be Spending $31,000,000,000 More Than They Are - Two Minute Tuesday - 20160426

last month, the Advertising Research Foundation released their findings from the largest study in 25 years focused on how advertising works. Much of the following text comes from a recent article in Advertising Age. The biggest take away was that “U.S. advertisers are leaving money on the table, underspending collectively by around 16% or $31 billion annually, because they fail to spread their budgets across enough media.” Advertisers are erring by shifting money among media platforms rather than spending more to spread it more widely. The study found brands on average can increase return on investment 19% by increasing from one media platform to two, with each additional platform adding to ROI, up to five, which improved ROI by 35% over using just one. But the ARF found 29% of campaigns relied on just one medium, and 60% relied on two or fewer. A great example given was A Crystal Light campaign using TV only produced $5.2 million in added sales on $3.5 million in media spending -- $1.49 per dollar spent. Adding Time Inc. magazine and digital produced $16.1 million in added sales on $3 million in spending -- $5.37 return per dollar of ad spending. Synergy from using both produced another $3.6 million in sales with no additional spending. While the magazine and digital was more expensive, leaving out any piece of it would have meant foregoing profitable sales.
http://adage.com/article/cmo-strategy/arf-brands-spend-31-billion/303113/ ANNCR: If you like what you just heard and are interested in talking more about how you can grow your business, call or text Jeremy Snider right now at 913-244-4424. 913-244-4424!

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