In a Dutch analysis of the return on investment (ROI) of advertising in five different types of media, print media proved to be the most cost-effective.. Magazines achieved the highest value for money, with an ROI index of 130. Newspapers were close behind with 120. Online banner advertising scored 110, while radio achieved an index of 90. Television advertising was least cost-effective, with an index of only 60. Or to put it another way, magazines and newspapers were roughly twice as cost-efficient as television.
The study was commissioned by the Dutch news media association, NDP Neiuwsmedia, and conducted by research agency GfK Panel Services, who operate a consumer panel collecting information on purchases and media behaviour. Analysis of purchases, ad campaign composition, media exposure and a range of other factors makes it possible to calculate the impact of each medium in generating the changes in sales levels. Return on investment can then be estimated by dividing the sales uplifts from each medium by the costs of buying the advertising in the medium. The results were then indexed.
This study was based on examining ten multimedia campaigns, from a diverse range of product fields including coffee, lottery, internet provider, dairy brand, travel agency, retailers and phone service.
The comment from Dutch news media is that by shifting some of the television advertising expenditure from television to other media, a significant uplift in return can be achieved for a campaign. “Cost per ROI is far more interesting than cost per GRP.”
This study is to be presented in more detail at the FIPP Research Forum in Hamburg on 16-17 June, where there will be a discussion of its wider implications.