How much profit your advertising generates? Compare it with the World’ s best ads!
New analysis of the World Advertising Research Centre (warc.com) has shown that the average profit delivered by the best advertising (the winners of advertising efficiency awards) is 1.8 times the advertising investment, or 180%, with even greater returns likely over the long term.
The median incremental sales return is 3.8:1 – that means that every dollar that is spent for advertising creates 3,8 dollars in sales.
The research is based on the return on investment (ROI) of the award- winning ads since 2000.
The research also found that the long-term returns of advertising are likely to be significantly higher.
SHORT- TERMISM IS KILLING ADVERTISING
In Cannes Lions Festival this summer, British researcher Peter Field presented new research based on data from the British Institute of Advertising (IPA) analyzing the effectiveness of ads that have won creative awards, such as Cannes Lions.
Surprisingly, the research by Peter Field showed that the efficiency of creatively awarded ads has decreased over the period of 10 years. Mr. Field argued that the problem is that with the rise of social media and viral advertising, many creatively awarded campaigns are “one-hit-wonders”, they last only for a few days.
“Short- term campaigns that last only for a few days or weeks are not as effective as long-term campaigns”, argued Mr. Field.
He went on to say that creative award judges are blinded by the “one-hit-wonders”, and that ‘short-termism has killed the benefits of the digital revolution’.
Digital advertising effectiveness issues will be discussed in more detail during “The Best of Global Digital Marketing” conference and dozens of highly effective works will be presented and analyzed.
Visit our next event in Vietnam, HCM City Oct 4th 2016
For more information, contact our partner VietnamMarcom; tel 38239718
By Hando Sinisalu, The Best of Global Digital Marketing