Underestimating the Impact of Ad Spending on TV

Jun 13, 2017  •  Post A Comment

“A first-of-its-kind analysis of TV audience data used by modelers to measure the return on investment (ROI) for ad spending found that it is sorely lacking, and in some cases misrepresents TV’s ROI by as much as 20%,” MediaPost reports.

The findings, unveiled Monday at the Advertising Research Foundation’s Audience Measurement Conference in Jersey City, N.J., came from an analysis conducted by Sequent Partners and Nielsen for the Council for Research Excellence, the report notes.

The analysis “found that a combination of legacy factors in the way Nielsen data is processed for third-party modelers contributes to inaccurate and/or weak data distorting their outputs,” the report notes.

“In 90% of the cases that Sequent and Nielsen analyzed, the effect was relatively small, distorting TV’s contribution to advertising ROI by less than 10%,” MediaPost notes. “But in 10% of the cases, the effect was relatively significant, reducing TV’s ROI by 20%.”

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