Traditional media advertising is the worst performing marketing discipline when it comes to proving return on investment with network television seen as the most unreliable channel, according to a new American study.
Together with the backing of the
Association of National Advertisers,
Advertising Age commissioned a survey of top US marketers that was carried out by WPP Group’s Lightspeed Research.
Results from the online poll of 222 marketing professionals were divulged at the ANA’s annual meeting last week. More than one in four respondents said they regarded media advertising as being worst for proving ROI ahead of public relations (25%) and product placement (13%).
Despite its high profile image, television advertising has a poor reputation among marketers. 2003 has seen strong upfronts characterised by inventory sellouts and soaring rates (see US Upfronts Hit Record $9bn-Plus Autumn Sales). However, 32% of survey respondents said that network TV was the worst medium for proving ROI. This rose to 44% among advertisers with budgets of more than $100 million.
Cable TV is regarded more favourably with only 5% of respondents believing that it offers the least transparency. A further 3% picked out spot TV while syndicated TV attracted 2% of votes.
Out-of-home advertising was cited by 14% of those surveyed as being the most difficult medium for proving ROI. This was followed by online and radio, both on 8%, with newspapers and magazines each getting a 7% share of the vote.
Looking at the top end of the scale, direct mail is clearly regarded as the best medium for proving ROI. It was chosen by 42% of respondents, more than double the number who cited the internet (19%). No other media discipline attracted more than a 10% share of the vote.
ROI priorities Return on investment has become a buzz phrase in marketing circles in the past few years but it would be wrong to dismiss it as a passing fad. In the Advertising Age survey, 73% of respondents said advertising and marketing functions at their companies are held to the same or higher level of accountability as other corporate functions.
Almost four-in-five marketers see themselves as responsible for measuring ROI rather than agencies and media sellers. Sales growth is the most common definition of a successful return on investment (76%) with market share growth (61%) and brand awareness (55%) also regarded as important.
