Digital advertising channels have significant short and long-term revenue impact for brands, according to a series of research studies by Meta.
Why digital matters
With more consumers shifting their media time to digital channels, the question of how digital advertising generates short and long-term ROI is an important one and it is the ultimate goal for most brands and businesses.
In a WARC Spotlight on Drivers of Brand Growth, Konstanze Fichtner and Harry Davison from Meta share findings from five independent studies conducted across different countries and categories in Europe, to calculate the short and long-term ROI of advertising across different media channels.
- The analysis of 3,500 campaigns found that long-term growth makes up a significant amount of the total impact of advertising.
- Across all categories in the analysis, the total ROI of ad spend across media, including short- and long-term effects, turned out to be 2.5 times higher than the short-term ROI alone.
- In other words, 60% of the total ROI from ad spend is generated long term.
- Long-term effects were found to be important across different categories in the analysis and for traditional as well as new businesses which operate solely online.
- The size of the long-term effects ranged from 42% in CPG to 76% in tech and durables.
This article first appeared on www.warc.com
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