TV generates a bigger share of ad profit than its share of spend
% share
share of spend43.6%
share of full profit54.7%
TV (linear plus broadcaster VOD) took 43.6% of analysed ad spend but generated 54.7% of full advertising-generated profit, with an average full profit ROI of £5.61 per £1.
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StatAdvertising's profit return more than doubles once sustained effects are countedStatMost advertising profit arrives after the first 13 weeksStatLinear 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 sectorWarningShort-term ROI makes profitable FMCG advertising look like a loss