Automotive and FMCG get the most of their ad return in the long term
long-term multiplier
Automotive3.6
FMCG3.1
Retail2.0
The long-term multiplier also varies by sector: Automotive 3.6, FMCG 3.1, Telecoms and Financial Services 2.1, Retail 2.0. In categories with long purchase cycles or habitual buying, most of advertising's value lands after the first quarter.
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StatAdvertising's profit return more than doubles once sustained effects are countedStatMost advertising profit arrives after the first 13 weeksStatTV generates a bigger share of ad profit than its share of spendStatLinear TV is the single biggest driver of advertising profitStatLinear TV can absorb far more weekly spend before it stops paying backPrincipleSaturation point: the last pound that still pays for itselfStatLinear TV is the second-biggest driver of same-week ad profitStatTV pays back slower than search but overtakes it within two weeksStatTV's effect carries over between weeks far longer than search or displayStatTV's long-term multiplier is more than double search'sStatAd profitability depends heavily on the sectorWarningShort-term ROI makes profitable FMCG advertising look like a loss