The long-term impacts of advertising: a first-of-its-kind study

Matthew Chappell

Matthew Chappell

Senior Partner

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Identifying which media drive KPIs and understanding their business impact over the short and long term are pain points for many marketers.

To help them overcome these challenges and find a better balance between business objectives and financial return, we conducted some research for ThinkBox as part of its Profit Ability report. The research, which addresses how to effectively measure the long-term impact of media investment, is the first of its kind.

Download the Profit Ability report.

While there is more data floating around than ever before, there tends to be a focus on short-term metrics.

If you publish a video, say, on a social media channel, you see that it gets a certain number of likes and shares within the first half hour. But how do you know that it is building long-term success? It is very easy for marketing departments to see what’s driving short-term success and focus their attention and investment on that. In doing so, though, they run the risk of losing sight of what is propping up the long-term business value.

Indeed, there is a long-term multiplier effect that many C-suite executives may not know about.

This research shows that there is often a multiplier to short-term impact. For example, if the multiplier is two and you generate a million sales within the first three months of a campaign, then you are likely to make two million in three years. Bearing that in mind, we looked at the whole plethora of marketing channels and found that TV tends to come out as the strongest medium.

The results of the research, which should provide confidence to CEOs and CFOs, show TV advertising works best in the long and short term.

Why “short-termism” is killing businesses:

The long-term impact of advertising:

Download the Profit Ability report.

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