A new study by Standard Media Index “goes a long way to solving one of the biggest quandaries that TV networks currently face: proving the full extent of their importance to advertisers in comparison with digital competitors,” MediaVillage reports.
“The new data show how TV can increase advertiser sales volume when budgets removed from TV to fund digital are returned even partially to TV,” the report adds. The report is written by James Fennessy, Standard Media Index CEO.
“Some first quarter 2016 statistics show why the digital rivalry is of such concern: In that period, 36% of all advertising dollars devoted to screens went to digital media, with traditional TV making up the other 64%. Two years earlier, in first quarter 2014, the digital percentage was considerably less, 26%, and TV made up 74%, according to SMI data,” the story reports.
“In the new study, we analyzed the spending and sales data of 100 top advertisers, using information from SMI along with sales data from the market research firm IRI and 10K filings,” Fennessy adds. “Our study shows that there were significant increases in consumer sales for advertisers whose spending followed certain buying patterns — most notably those who had decreased their TV spend over the last two years, but then increased it again.”
We encourage readers to click on the link to MediaVillage near the top of this story to read the full report.