ARF Produces Its Greatest Value In 80 Years

Hereamp8217s a video of my topline summary as captured by Bob Ledereramp8217s Research Business Daily Report and now on the ARF websiteARF has powered the advancement of advertising and media many times in the past in fact continuously The spikes that come to mind include the first Media Model 1953 and Adworks 1980 As huge as those contributions were not to mention many others in just the past 10 months the ARF and the many of us who will do anything to help it accomplish its objectives have caused essentially every significant study of advertising ROI in the past ten years to be rolled up to a single view of reality something like 5000 studies ten times as many in 1980 when Behaviorscan was the only method available and only the US was covered This metaanalysis covered many ARF approved methods and over 60 countriesWhat did we find out ARF CEO and President Gayle Fuguitt summed it upTV is the single most important medium to advertising ROIThe more other platforms you add to TV the more you reaccelerate ROIYou gain the most by creating separate budgets for additive media rather than taking it from TV No combination of other media can replace the effect of TV due to its fast reach leanback and highest production valuesThe underlying creative strategy should be the same for maximum ROIThe ways the platform is used to bring out and enhance the creative strategy requires customization to the unique strengths of each mediumThe third point above is probably the most radical from the point of view of current practices Advertisers have not had sound science for setting the size of the advertising budget The best way to determine the right overall advertising budget level is by AB testing which is now affordable using cable zones However this new news is not yet widely adopted and in the general zeitgeist has been an unspoken disbelief that advertising works to generate incremental sales in any significant way As a result the least political risk to a worker within a large advertiser has been to ultraconservatively assume the total ad budget is fixed and as new media appear that seem to be worth testing money is taken from traditional media notably TV to fuel those new mediaGayleamp8217s revelation was strongly supported by a study reported at the same conference by TiVo Research and 8451 supported by three media companies including Howard Shimmel at Turner and Mel Berning at AampampE In this study 15 CPG brands randomly selected from a list of brands reducing TV spend in the US between 2013 and 2014 were found to have lost 3 in sales for every 1 in savings on TV spendStay tuned for more from this watershed conferenceImage at top courtesy of Corbis The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillageMyersBizNet management or associated bloggers

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ARF Produces Its Greatest Value In 80 Years

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Bill Harvey

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