Ad spends move to internet formats, but TV still preferred medium for some sectors: Report

The latest Global Ad Trends study, by WARC, reveals that television is still the preferred ad medium for sectors like soft drinks and the food industry

e4m by exchange4media Staff
Updated: Oct 1, 2019 7:19 PM
WARC

The latest Global Ad Trends study, from WARC — the global authority on advertising and media effectiveness — has revealed that though advertising spends are shifting towards internet formats, but the rate at which that is happening depends on the sector. The study reveals that food and soft drinks, for instance, still pour around two-thirds of advertising investment into TV.

Food and soft drinks are far less likely to have been disrupted by e-commerce, so the need for high levels of digital adspend to facilitate a path to purchase is reduced, the study says.

On the other hand, the pivot to online advertising is particularly stark within financial services and retail, with both sectors having invested heavily in developing digital platforms to serve their customers in recent years.

James McDonald, Managing Editor, WARC Data, and author of the research, was quoted as saying, “In a multichannel world, it has become harder than ever to track campaign performance, to measure ROI, or to even trust third-party data. The problem is compounded by an environment of ad blocking, fraud, and consumer distrust, and is hazed by walled gardens, programmatic stacks and opaque practice. This results in millions of ad dollars wasted each year. But it is essential that ad investment works harder in the media mix to obtain optimal reach and effectiveness. As such, our latest research into product category insights provides vital data to help brand owners, agencies and media strategists and planners inform their decision making.”

 The Global Ad Trends highlights these trends and more in 11 of the 19 categories available to clients, including the following:

 Food

  • Total global ad spend in 2018: $25.3bn (+1.4% year-on-year)

 

  • Median revenue ROI for successful campaigns: 2.93

 

  • Media spend: TV $16.5bn (+1.0% year-on-year). Internet $3.7bn (+7.9%). Print $2.8bn (-12.7%). Other $2.3bn (+15.3%).

 

  • Ad/sales ratios: Food (2.6%). Confectionery (5.6%). Dairy (0.6%). Meat, fish, poultry (0.7%).

 

Soft drinks

 

  • Total global adspend in 2018: $15.1bn (+1.1% year-on-year)

 

  • Median revenue ROI for successful campaigns: 2.84

 

  • Media spend: TV $10.5bn (+1.1% year-on-year). Internet $1.9bn (+28.3%). OOH $1.3bn (-24.1%). Other $1.4bn (+1.3%).

 

  • Ad/sales ratios: Soft drinks (5.9%). Bottled water (5.9%). Carbonated (5.9%).

 

Financial Services

 

  • Total global adspend in 2018: $43.2bn (+13.0% year-on-year)

 

  • Median revenue ROI for successful campaigns: 2.93

 

  • Media spend: Internet $19.7bn (+24.4% year-on-year). TV $12.9bn (+4.0%). Radio $3.7bn (+5.1%). Other $7.0bn (+6.7%).

 

  • Ad/sales ratios: Financial services (3.6%). Banks, credit, loans (6.7%). Insurance (0.8%). Investment (1.5%).

 

Retail

 

  • Total global adspend in 2018: $62.3bn (+0.0% year-on-year)

 

  • Median revenue ROI for successful campaigns: 4.40

 

  • Media spend: Internet $21.5bn (+9.1% year-on-year). TV $20.3bn (-0.6%). Print $9.6bn (-15.5%). Other $10.9bn (+0.8%).

 

  • Ad/sales ratios: Retail 2.3%. Clothing & fashion (2.9%). Restaurants (2.0%). Supermarkets (1.2%).

 

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