Worldwide advertising works
"Bang for your Buck" is the title and result of a Europe-wide study on the efficiency of advertising campaigns in international media. It was carried out by CNN and PWC.
On behalf of CNN International, Pricewaterhouse Coopers (PWC) examined the efficiency of advertising campaigns in international print media and on television. The study was based on survey and advertising data from over 85 brands from the travel industry, the luxury goods sector and the financial services sector. "At a time when budget decisions are heavily dependent on brand preference and sales figures, the demand for advertising investments is on the rise again," says Thomas Hoehn, Partner at PWC and father of the study. "With the Europe-wide study, CNN and PWC were able to prove that advertising in international media ensures increased brand preference, brand recommendation and ultimately higher sales figures." Advertising is therefore a "bang for your buck", a real hit for sales.
The results of the study in detail:
- International media strongly influence the purchasing behavior of an elusive but highly attractive target group.
- Viewers and readers who intensively consume international media have higher brand recognition than consumers of local media. They are also more inclined to recommend brands from the tourism and financial sectors.
- Consumers of international media react very sensitively to brands. They rate the quality of branded products higher than recipients of local media. The quality of heavily advertised brands in particular is rated as high.
- With the reception of international media, the need for luxury goods is increasing, especially for watches from the luxury goods sector.
- For watches in particular, the brand is more important for women than for men. Price is the second most important factor for both sexes.
- A ten percent increase in international advertising expenditure in the tourism sector - an average of three million dollars per year between 2001 and 2007 - generates 70,000 additional visitors per year for travel destinations.
Direct correlation with sales increase
The results of the study prove that advertising can be successful even in financially strained times - even if the study only proves this for the international media niche. CNN supported the project primarily because there was previously no valid research data in this area. "The media agencies and clients we work with have been asking for this kind of measurability of advertising effectiveness for a long time," says Jonathan Davies, Executive Vice President Advertising Sales at CNN International. "Our results provide a real measure for anyone in the advertising industry who needs to show a direct return on investment." This is likely to be all advertisers at present. "Importantly, we were able to measure results in both sales and long-term brand preference," emphasizes Didier Mormesse, Senior Vice President Research at CNN International. "We hope that this survey sends a universal message to all other international media companies."
PWC collected its results using three different methods: Econometric measurements were used to determine the influence of advertising on sales, an EMS study was used to survey the brand preference of customers with high and low use of international media, and finally the customized study was used to analyze the value of brands in relation to media consumption. A next step for companies could now be to use their own analyses to investigate the impact of their brand in international media and to strengthen it.
Anne-Friederike Wilhelm
The results of the study in detail:
- International media strongly influence the purchasing behavior of an elusive but highly attractive target group.
- Viewers and readers who intensively consume international media have higher brand recognition than consumers of local media. They are also more inclined to recommend brands from the tourism and financial sectors.
- Consumers of international media react very sensitively to brands. They rate the quality of branded products higher than recipients of local media. The quality of heavily advertised brands in particular is rated as high.
- With the reception of international media, the need for luxury goods is increasing, especially for watches from the luxury goods sector.
- For watches in particular, the brand is more important for women than for men. Price is the second most important factor for both sexes.
- A ten percent increase in international advertising expenditure in the tourism sector - an average of three million dollars per year between 2001 and 2007 - generates 70,000 additional visitors per year for travel destinations.
Direct correlation with sales increase
The results of the study prove that advertising can be successful even in financially strained times - even if the study only proves this for the international media niche. CNN supported the project primarily because there was previously no valid research data in this area. "The media agencies and clients we work with have been asking for this kind of measurability of advertising effectiveness for a long time," says Jonathan Davies, Executive Vice President Advertising Sales at CNN International. "Our results provide a real measure for anyone in the advertising industry who needs to show a direct return on investment." This is likely to be all advertisers at present. "Importantly, we were able to measure results in both sales and long-term brand preference," emphasizes Didier Mormesse, Senior Vice President Research at CNN International. "We hope that this survey sends a universal message to all other international media companies."
PWC collected its results using three different methods: Econometric measurements were used to determine the influence of advertising on sales, an EMS study was used to survey the brand preference of customers with high and low use of international media, and finally the customized study was used to analyze the value of brands in relation to media consumption. A next step for companies could now be to use their own analyses to investigate the impact of their brand in international media and to strengthen it.
Anne-Friederike Wilhelm
CNN International and PWC have examined the impact of advertising in international media using data from the travel industry, the luxury goods industry and the financial services segment.
