- CPG companies lose up to $3 in sales for every $1 they divert from TV advertising.
- Sales dropped by a combined US$94 million for 11 of the 15 brands analyzed, accounting for 69% of the 2013 incremental sales attributed to TV advertising.
- 11 of the 15 brands saw their household quarterly reach decline by an average of 14 million.
- An average US$3.1 million decline in TV investment by 11 brands produced an average drop in sales of US$8.6 million.
Who Should be Advertising on Television
Whether you’re a CPG, an automotive dealer, a home remodeling business, or a private college, it is becoming increasingly obvious that a mix of advertising media is critical to communicating with your customers. Not everyone is on their computer all day, or phone for that matter, being presented with digital/online ads. They’re listening to the radio on their way home from work, on the way to the shopping mall, they’re watching television after they put their kids to bed at night.
For more on the prevalence and strength of television advertising, check out these articles:
Television Advertising Still Going Strong
Television Advertising is Still Dominating!
Good Response Tools and CTAs for Television
Other study findings prove that advertisers can expect up to an 84% improvement in consumer recall rates when they feature a vanity 800 number rather than a numeric toll-free number in visual advertising media (billboards, magazines). A second portion of the study focusing on audio advertisements (television, radio) shows that consumers are nine times more likely to recall a vanity 800 number compared to a numeric toll-free phone number.
- 84% Improvement in Recall Rates with Vanity 800 Numbers in Visual Media.
65% of survey respondents were able to correctly recall the vanity 800 number that was featured in a visual advertisement.
- Consumers Are 9 Times More Likely to Recall Vanity 800 Numbers in Audio Ads.
Over 72% of consumers correctly recalled the vanity 800 number after hearing one 30-second simulated radio advertisement, compared to just 5% of consumers who correctly recalled the numeric toll-free number.
- Consumer Prefer to Dial Toll-free Vanity Numbers.
58% of survey respondents stated that they would prefer to dial a toll-free vanity 800number over a local numeric phone number in order to reach a business.
A Winning Combo
These study findings reveal that television advertising combined with a solid, easy-to-remember response tool is essential to maintaining and improving year-over-year sales for not only CPG companies, but for service-focused businesses, local retailers, and businesses of all shapes and sizes.
Read more on the television study by TiVO Research here.