5 December 2014
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Proving the effectiveness of TV advertising in a fragmented digital world. Marketing mix modelling technology by marketingQED


With the proliferation of digital media outlets and thus new ways to spend marketing budgets, clients demand reliable ROI indicators for their campaigns. The need to go beyond the traditional media KPIs to determine the real impact of marketing requires mix modelling analysis that can prove the power of TV in terms of sales and profits.

TV’s brand building power in digital times is more important than ever. Good TV campaigns have excellent recall results – even with digital natives – whereas the overwhelming majority seem to struggle remembering just one online ad. TV creates the all-important stimulus that triggers digital activities. With all the digital hype, we often seem too to forget that offline activity can be clearly seen to drive online traffic.

To prove this with thorough analysis and data advertisers can understand, a marketing mix modelling is needed. However, it tends to be costly, time-consuming and requires econometric expertise beyond the scope of media sales experts. The ideal analysis would demonstrate clearly to the client that for €1 spent on TV, his ROI is €1.3 for example. At egta’s Marketing & Sales Meeting in Reykjavik, a technology partner presented a software solution addressing exactly this issue: marketingQED uses data visualisations and advanced analytics to show when and where client’s marketing activities are most effective, giving the client the power to adjust and forecast accordingly. Armed with sales data and details of recent marketing activities, QED software can run thousands of potential marketing mix models, providing a clear ROI picture and workable strategies for the future.

A concrete example

If marketingQED’s technology is used to analyse an FMCG client, for instance, the following elements are evaluated:

  1. Which activity has had a significant impact on sales during the last two years?
  2. How big was the impact?
  3. What was the ROI of a given activity?

In this particular case study, the analysis focused on media category, comparing the effects of TV vs. radio, print, OOH and digital. Of course, a deeper scrutiny can be made, by using more granular criteria such as channel placement or day-part mixes with very quick results. This analysis, carried out with marketingQED’s marketing-mix-module - modelQED, found that TV is by far the biggest contributor to sales (14.9%). It also provides insights on how the TV investments can potentially be optimised to offer higher marginal profit ROI.

Finally, the data also showed that TV was the medium with by far the highest response curve, leading to the conclusion that the client’s initial thought to cut 30% of the TV budget and re-assigning it to digital (online) wouldn’t be an efficient strategy. Although the digital contribution could certainly be increased with a massively higher budget, it still couldn’t compensate the resulting loss of TV-impact.

Why does it matter to egta members?

In a digital world of accountability, being able to determine the real impact of marketing and advertising is extremely helpful and demanded by clients. It goes way beyond the usual media KPIs they request. If media owners can establish the proper causality between activities and results, they can effectively prove the power of TV in comparison to all other media activities. A tool such as this one can and should of course also serve to help clients decide on their media mix beforehand and optimise their cross-platform campaigns. Multimedia sales houses can therefore secure a good ROI for client’s campaigns running on their channels, and adequately suggest investments to strengthen the campaigns with extensions to their other platforms such as online or radio.


Target: TV
Background info

Please click on the links below to access the relevant documents:

» marketingQED website (please click here)

» Need more information? Contact Andreas Hofmaier

Download in PDF

Please click here download the PDF version

Next events

» egta IT Users Fair
10 December (WED), Brussels

» egta Market Intelligence Meeting
29 January (THU), Vienna
Programme TV
Programme RADIO

» egta DigitalNext Meeting (THU), Helsinki
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