TV advertising is still a powerful money maker in Germany as its sales impact and success factors have not declined in recent years. This is the conclusion of a recent survey by GfK Marktforschung that analyzed over 160 TV advertising campaigns for consumer goods and their ability to convert into sales. The research reviewed purchases made by a test group of households exposed to TV spots and compared them with parallel results from a control group to accurately determine sales success.
Research of TV ad analysis data for the past 20 years shows an average 20% increase in market share fueled by a TV campaign, yet as it was primarily generated by an increase in consumer numbers, it shows a steady effect of TV advertising. Focusing the analysis on the 2001-2011 period yielded the same conclusion – TV the average sales impact for TV commercials has remained the same.
While the general results for TV advertising are similar, the survey also showed that the most popular TV spots aired in the past decade have led to less significant increases in market share and penetration and thus were less successful than those aired at the beginning of the analyzed period. What’s more interesting is that in recent years, TV ad campaigns are back to the former glory and are able to deliver and maintain steady results.
Overall, the average sales impact of TV commercials has remained unchanged over the past 20 years and new forms of advertising, powered by the Internet, have not shattered its position. At least in the German market, GfK managed to prove wrong the common belief that TV ads are becoming less and less successful.
The survey also concluded that the budget allotted to a certain TV campaign determines its degree of success. Larger amounts invested translate into a larger average market share growth and better penetration. Advertising pressure also has a significant impact on how a TV ad performs. Other influencing factors, although slightly less powerful, are an ad’s creativity and message.