TV advertising generates strong and lasting word-of-mouth effects

On behalf of the British TV industry association Thinkbox, the marketing consultancy Data2Decisions analyzed the word-of-mouth effects of 36 retail, financial and beverage brands. The study focused on the interaction between paid media (paid advertising activities), owned media (company-owned media such as websites) and earned media (online and offline brand conversations by consumers). Data from various sources was merged for the study, including the YouGov Brand Index, the Brandwatch Social Media Monitor and surveys by Keller Fay's word-of-mouth specialists. Econometric methods were used to analyze which additional brand conversations companies initiate with their marketing activities. This refers to conversations that go beyond the normal word-of-mouth level - resulting from past marketing activities or seasonal factors, for example. 

First of all, it can be seen that the majority of conversations about brands take place offline - in person or on the phone (95 %). Only 5 percent of brand conversations take place online and on social media. Additional discussions about brands are mainly triggered by paid media activities. According to the study, a total of 72% of additional brand conversations between consumers are initiated by paid advertising activities. TV advertising is particularly effective: more than half of the additional brand-related conversations (51 %) are attributable to TV advertising. Online advertising triggers 12% of word-of-mouth activities. Other advertising activities such as print advertising (4 %), outdoor advertising and direct mail (2 % each) as well as cinema and radio advertising (1 % each) have a much smaller influence on consumer conversations. In addition to these traditional advertising activities, other factors that stimulate word-of-mouth are PR measures and events (19 %) and changes to products and services (9 %).

However, TV advertising is not only a powerful lever for stimulating conversations about brands, it also has an effect over a longer period of time. In the week following a TV impulse, word-of-mouth activities only decrease by 15 percent, and in the third week the activity level is still 72 percent of the initial level. Thanks to this "carry-over effect", TV advertising can make brands a permanent topic of conversation.

In addition, the study shows that TV advertising also makes a significant contribution to consumers using the company's own communication platforms: 47% of additional visits to brand websites are directly stimulated by TV advertising.

There is also an indirect effect, as a further 18% of the additional traffic is due to word-of-mouth effects. Here too, other activities such as online advertising (10 %), PR (8 %), outdoor (6 %), print (3 %) and radio advertising (2 %) or the company's own Facebook presence (2 %) have a much weaker effect than TV.

Interestingly, TV advertising is also a key influencing factor in terms of corporate reputation (52 %). PR, brand news and events are significantly less effective in this respect (24 %).

Clemens Koob

Key Facts

• Paid media is responsible for 72 percent of all additional brand conversations above the basic level.
• TV advertising has the greatest stimulation effect (51%). Online advertising follows at a considerable distance (12%) ahead of print (4%) and outdoor (2%).
• TV advertising also has a lasting word-of-mouth effect: the activity level in week 2 after activation is 85 percent, in week 3 it is still 72 percent.
• TV advertising also generates traffic to the brand's own websites (47% of additional traffic). Online advertising (10%) or the brand's own Facebook page (2%) generate significantly less traffic.
• TV advertising contributes significantly to a positive corporate reputation (52%).