1. Cutting TV Advertising Hurts SalesCutting TV Advertising Hurts Sales
Lost Sales….Three Times the Ad ‘Savings’Lost Sales….Three Times the Ad ‘Savings’
There’s been growing evidence that digital advertising produces significantly lower ROI than
television for consumer packaged goods (CPG) brands. Now independent research by 84.51°(a
consumer engagement consultancy owned by Kroger) spells out just how much it costs CPG brands in
sales when they shift TV budgets to digital in an attempt to “save” money. The study, conducted
along with TiVo Research, found that most of the brands studied lost about three dollars in sales
for every one dollar they had reduced television ad spend.
The study analyzed 15 random brands that had reduced TV spending by at least 25% between
2013 and 2014. The brands analyzed by 84.51° covered a variety of categories including beverages,
candies, snacks, ingredients and others.
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