TORONTO – Despite television’s reign as the most-watched medium across all demographics, growth in TV advertising in Canada is stagnant, says a new paper by media agency MediaCom Canada.
Commissioned by TV marketing and research association thinktv, Missed Opportunities in Media Planning (and the Case for ROI) analyses the correlation between TV investment and key financial indicators, the impact that TV has on digital, and the factors that are impeding TV advertising’s growth in this country.
Key highlights from the whitepaper include:
– There is a direct correlation between TV spend and business growth: 50 companies in Canada whose TV spend was flat or only increased minimally (<30%) between 2011 to 2015 had an average revenue growth of 9%, whereas those who increased their TV spend (>30%) over that same period achieved a more substantial 21% average increase in revenue;
– TV and digital are interdependent: Spending in TV also has a direct correlation with brand consideration and online activity as customers search for brands;
– Marketers should focus on outcome, not delivery metrics, to drive meaningful ROI: The industry must shift from delivery metrics like GRPs and click-through-rates to outcome metrics such as sales and customer acquisitions; and convince brands that meaningful, measurable outcomes depend in large part on the availability of historical sales and customer data to inform the media plan.
