The study, by Thinkbox, the UK marketing body for TV advertising, encompasses an extensive analysis of £1.8 billion in media spend across 141 brands and 14 categories in the UK, making it the most thorough examination of advertising effectiveness to date. The study synthesises data from Ebiquity, EssenceMediacom, Gain Theory, Mindshare, and Wavemaker UK. The findings reveal that advertising is not just a tool for brand awareness but a robust driver of profit growth.
On average, a pound invested in advertising returns just over £4 in profit. But that’s an average across a wide scope of different media investments.
Importantly, the study highlights that while television leads in overall profit contribution due to its share of advertising expenditures, print advertising delivers the highest return on investment (ROI) in profit.
Print advertising overperformance
Despite representing only 3,3% of the total advertising investments analysed, advertising in newspapers and magazines account for a remarkable 4,8% of the profit generated. This disproves the notion that print is a declining medium and instead positions it as a highly efficient channel for profit generation.
Specifically, print advertising yields an impressive £6.36 in profit for every pound spent, outperforming other media such as linear TV (£5.94) and audio (£4.98).
Sustained profit contribution
One of the key insights from the study is the importance of sustained advertising efforts.
It was found that 58% of advertising’s total profit generation occurs after the initial 13 weeks. This underscores the long-term value of advertising investments, particularly in traditional media like print, which continue to yield returns well beyond the immediate period.
Additionally, print advertising has the highest relative contribution to profit when considering short-term payback (up to 13 weeks), proving its effectiveness in both the short-term and long-term.
