egtabites is pleased once more to Share the TV Love, this time with compelling research from Spain that demonstrates television’s remarkable power to move people.
Searching for new ways to convince the market
 Atresmedia – one of Spain’s leading broadcasters, which includes the channels Antena 3, Nova and Mega in its portfolio – proactively searches for solutions to promote TV’s power and the medium’s advertising effectiveness to the market. In February 2016, the sales house Atresmedia Publicidad and Tres14 Research conducted a study to expose the ROI of television for one of TV’s biggest advertising sectors, the premium automotive industry.
The study
A new econometric model was developed to help explain the extent to which each of the main business variables affect foot traffic to car dealerships. The variables analysed comprised offline (traditional) and online advertising, long-term awareness, external variables such as the Madrid and Barcelona Car Shows, and seasonal variables.
The objective of the research was to determine which of these variables had a greater impact on the number of people visiting car showrooms and by extension the effect on sales. The model was also designed to define the volume of television GRPs required to achieve a desired level of dealership visits.
The model shows the direct impact that TV advertising campaigns have on the number of visits a car dealership receives, and therefore on sales. The results were impressive: TV campaigns account for 31% of visits; in other words, one out of every three people entering the point of sale does so as a direct consequence of seeing the auto brand’s television advertising.
The study was able to clearly establish the correlation between GRP volumes and the number of visits. The findings show that each GRP bought on TV converts to 1.8 visits to a car dealership. This information is very valuable to auto brands, as it allows them to conduct post-campaign analyses, adjust their marketing activities and make projections about the volume of GRPs required to achieve their future objectives.
It is worth noting that the study shows that 61% of dealership traffic is generated by brand image, which is built up over time through television campaigns, such as announcements of the re-styling of existing models or the launch of altogether new products.
Why does it matter to egta members?
This research not only provides further evidence for the power of television advertising, it gives the sales house additional insights to take to market. Helping auto brands better understand how each of the several business variables affects dealership visits gives the sales house a new narrative; online media may offer the illusory accountability of a return path, but TV is the medium that actually walks the talk!
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