The average brand could double ad spend and stay profitable
2x
profitable spend headroom
+11%
profit growth
£32bn
total opportunity
The Growth Gap, a WPP Media study for Thinkbox built on the Profit Ability 2 database (624 brands, 7,400+ scenarios), estimates the average brand could double its advertising investment while every extra pound stays profitable, unlocking about 11% more profit growth, around £32bn.
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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