Archive | March, 2015

Study Re-Affirms Long-Term Sales Impact of TV Ads, But Suggests Small Players May Do Better

Nielsen Catalina Solutions Tweaks Model And Finds Old Assumption Mainly Still Holds

Less than a year after seeming to prove the long-term sales effect of TV ad spending is as strong or stronger than ever, Nielsen Catalina Solutions has found some possible caveats to that — which could have implications for both big and small advertisers.

A new study encompassing a group of 31 packaged-goods brands (far larger than the five in the study released last June) reconfirms the old assumption that long-term sales effects from TV ads are double the immediate short-term sales effects. The long-term multiple in the new study, however, averages 2.04 times the short-term effect, somewhat lower and with a narrower range than in the June study.
Nielsen Catalina mashes up data from Nielsen audience-measurement panels and tools with shopper-card purchases to find the sales impact of advertising for packaged-goods brands.Results of the study were presented to the Advertising Research Foundation Re:Think 2015 conference on Tuesday in New York.

The new study still finds a fairly wide range – from close to one to around three times short-term sales – for the overall effect of TV ads, including one outlier brand getting a 3.5 times multiple. The new study tweaked methodology to exclude long-term sales from people not affected by the ads in the first place, and narrowed the “short-term” time window to the scheduled flight, rather than including the long tail of airings caused by make goods.

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