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Big Sales Gains Follow TV Ad Spending Hikes

A new study found the biggest gains in products sales were registered by marketers that increased their TV spending.

The research by Standard Media Index and Research Measurement Technologies saw significant spikes in sales for brands that had reduced their TV spending in favor of digital but subsequently shifted ad dollars back to TV over a two year period.

The study covered 100 major advertisers from first quarter of 2014 to first quarter of 2016.

The biggest gains were registered by a dozen advertisers, who saw sales revenue jump by 14.6% on average. Those companies increased their ad spending by 25.8%.

For three consumer packaged goods companies in the study that became aggressive digital marketers, sales rose 4.68 times their incremental TV ad spending after they switched back to TV.

SMI and RMT plan to release the complete study next week at the Advertising Research Foundation conference in New York.