Profit Ability:
maximising bottom line impact
Advertising has become confusing. Faced with a multitude of channels competing for investment,
what can the C-suite trust to grow their businesses?
A recent report from Ebiquity and Gain Theory has for the first time quantified the total profit generated by different forms of UK advertising to determine their impact on the bottom line,
in both the short and long term. With the report drawing data from over 2,000 advertising campaigns, business leaders are finally armed with the critical insights that reveal what truly
drives fundamental business success.
AVERAGE PROFIT ROI WITHIN 3 YEARS
Long term
TV
Print
Online video
Radio
Out of home
Online display
All media
£4.20
£2.43
£2.35
£2.09
£1.15
£0.84
AVERAGE PROFIT ROI WITHIN 3-6 MONTHS
Short term
TV
Print
Online video
Radio
Out of home
Online display
All media
£1.73
£1.44
£1.21
£1.61
£0.57
£0.82
£3.24
£1.51
Long-term
studies
100%
Less than half of advertising’s
profit impact happens in the short term
Attribution
modelling
18%
Short-term
econometrics
42%
TV advertising delivers the highest volume
of profit in both the short and long term
% OF PROFIT WITHIN 3-6 MONTHS
£5.00
£4.50
£4.00
£3.50
£3.00
£2.50
£2.00
£1.50
£1.00
£0.50
£0.00
Average profit ROI
00%
10%
20%
30%
40%
50%
60%
70%
% of budget
Only by evaluating advertising’s long-term effect will you get a 100% view of how your advertising is working in order to maximise the growth and value of your company.
Online display
Print
TV
Radio
Online video
Out of home
2%
5%
5%
3%
22%
62%
% OF PROFIT WITHIN 3 YEARS
Online display
1%
3%
4%
3%
Print
Radio
Online video
Out of home
TV
18%
71%
click here to view progression
Due to its scale and popularity, TV can deliver efficient profit return at high spend, creating the highest volume of advertising-generated profit of any media, both in the short and long term.
of total advertising-generated profit is delivered by TV
Advertising-generated profit varies not only between the short and long term, but also by business sector
Factoring in long-term measurement is crucial to understanding the impact of advertising on different sectors.
71
TV
%
Radio
Print
Online video
Out of home
Advertising is a powerful business investment for long-term
impact, but the picture is very different if you only consider
the short-term effects
Total profit ROI varies by channel, but all forms of advertising, except online display, deliver profitable long-term returns. Profit ROI drops significantly if you're only taking short-term results into account.
Of all forms of advertising, TV is the safest business investment
When advertising is risk assessed, TV is the safest medium as it is most likely to create advertising-generated profit - whether that's in the short or long term.
Online display
All media
PROFIT LIKELIHOOD WITHIN 3-6 MONTHS
PROFIT LIKELIHOOD WITHIN 3 YEARS
of TV advertising delivers a profitable return in
the short term
70
%
86
%
of all TV campaigns on average, pay back across the short and long term
All media
Online display
Radio
Online video
Out of home
Print
TV
100%
100%
£2.35
£1.76
£1.55
£1.46
£0.67
£1.18
£1.92
Short term
Financial
Services
£4.96
£2.20
£2.77
£1.87
£1.47
£1.18
£3.71
Long term
£2.71
£3.01
£2.51
£1.90
£1.78
£1.37
£2.53
Short term
Long term
Retail
£7.89
£3.97
£4.04
£5.53
£3.04
£1.47
£6.02
It’s time to reassess the potential return generated by advertising
By under-investing in TV, advertisers are not maximising advertising-generated profit. 71% of total advertising-generated profit is delivered by TV, despite this channel only receiving 54% of advertising budgets.
£0.60
additional profit for UK businesses could be generated by matching investment levels with media channel effectiveness
450
m
£0.36
£
£0.25
£0.38
£0.30
£0.10
For the first time, we can see that TV is the form of advertising that yields the greatest impact on the bottom line. By adopting a long-term view of advertising ROI, marketers can identify the safest form of investment, maximise business growth and unlock additional profit.
£0.53
Short term
Long term
To read the full Profit Ability report,
£1.69
£O.71
£O.59
£1.02
£0.89
£0.10
TOTAL AD-GENERATED PROFIT WITHIN 3 YEARS
£1.49
TV
Print
Out of home
Online video
Radio
Online display
TV
Radio
Online display
Print
Out of home
Online video
TV
Radio
Online display
Print
Out of home
Online video
% OF PROFIT
% OF BUDGET
18%
3%
4%
4%
1%
%
18%
23%
8%
6%
5%
4%
%
54
71
FMCG
Top
click here to view previous %
TV
Radio
Print
Online video
Out of home
Online display
All media