At this year’s IPA EffWorks Global, Les Binet (Group Head of Effectiveness of adam&eveDDB) provided a framework for planning media in economic uncertainty. During the session, ‘Marketing in the post covid economy’, Binet highlighted how short and long term investments should be dialled up and down depending on various factors.
One of the factors that Binet advises marketers to take advantage of is the value for money ratio for TV – a measure of the relative cost (CPT) of TV compared with the volume of total consumer spending. Binet’s data shows that the ratio has been rising over time as TV pricing has not kept pace with consumer spending in the long run – TV’s value for money has been getting better over time, particularly since 2000 due to increased competition from the tech giants.
Source: Les BinetInterestingly, when we focus specifically on times of recession (the 1970s, the 1990s, 2001 and more recently 2020 which was impacted by the global financial crisis and Covid), TV’s value for money increased sharply. The 1981 recession is the only exception.
This highlights the opportunity that advertisers and planners can take advantage of. If your particular sector is performing well, this is the perfect opportunity to buy share of voice, a method utilised by FMCG advertisers as they increased investment in TV during the pandemic.
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Source: thinkbox.tv
