Short-term ROI makes profitable FMCG advertising look like a loss
FMCG profit per £1
loss to profit£0.48
short-term
£1.48
full
£1 breakeven
FMCG advertising returned only £0.48 per £1 in the short term, an apparent loss, but £1.48 once sustained effects were included. Financial Services went from £0.94 to £1.95. Judging these categories on 13-week ROI would cut advertising that is profitable.
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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'sStatAutomotive and FMCG get the most of their ad return in the long termStatAd profitability depends heavily on the sector