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"One out of every two euros lost attributable to divestment in advertising"

Advertising has a positive impact on sales

A report from the consultancy firm Kantar shows that advertising has a positive impact on brand sales. After analyzing the different levels of coverage of the television campaigns that 30 food brands carried out, the consultancy firm concluded that massive campaigns, or those with greater television coverage (with an average of 87%), contribute 10 times more to the sales of a brand than moderate campaigns (those with an average coverage of 46.7%).

According to the study, the optimal scope to maximize sales via a television campaign is having 70% to 89% coverage. After 89%, there would be a saturation effect and the increase in sales would begin to stagnate.

“The data proves that one of every two euros that the Spanish brands lost in 2019 is attributable to divestment in advertising. Current analyses allow us to anticipate the effect that ceasing to invest will have on a brand,” concluded Mayte Gonzalez, Kantar's activation director, Worldpanel division.

Despite the high reach that brands can achieve with good television coverage, Kantar affirms that efficiently adding other media, such as digital channels or radio, not only increases the audience but also reaches a wider audience. This is what the sector knows as crossmedia, a strategy that provides an increase in coverage, audience diversification, the construction of the brand image, and an improvement in sales.

According to Kantar's analysis, in the short term, this kind of advertising accounts for 7.2% of the brands' sales; television accounts for 53% of sales, while digital media and radio are responsible for 30% and 17%, respectively.

"Advertisers must bear in mind that, even though 2020 will be over in two months, there still are two key moments in which they'll have the opportunity to apply the efficiency of crossmedia to improve their results in this last quarter of the year: Black Friday and Christmas,” the consultancy firm highlighted.



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