Background
Earlier 2024, Profit Ability 2: the new business case for advertising, commissioned by TV industry body Thinkbox, analysed the profit generated by advertising at different stages as its effects build over time: immediate (within one week); short-term payback (up to 13 weeks); sustained payback (week 14 through to 24 months); and full payback (0-24 months). Six sectors were considered, including FMCG.
Key stats
- While Linear TV is roughly average in delivering short-term ROI, over the long-term it offers the strongest return for the FMCG sector at £2.30 versus an average for all media of £1.48.
- Adding in non-linear options (BVOD and Online Video) takes the total AV share of FMCG budget to 75%, compared to an all-sector average of 44%.
- FMCG has one of the highest ‘sustained effects’ multipliers in the Profit Ability 2 study (3.1 versus a study average of 2.2).
- All channels except Online Display generate positive returns when sustained advertising effects are included.
Why it matters
Simply, TV continues to work, the study observes: it’s a powerful driver of mental availability, increasing a brand’s chances for low consideration, impulse purchases. TV also scales, delivering 58% of sector profit in the short term and 68% in the long term.
Source: warc.com + Thinkbox