John Wanamaker, founder of the department stores that bear his name is
famous for saying, "I know that half of my advertising is wasted?I
just don't know which half."
However, a Deutsche Bank study that concludes, "TV advertising doesn't
work for mature packaged goods." The study, done by Information
Resources Inc., looked at 23 household, personal-care, food and
beverage brands and found only 18% generated a positive return on
investment in the short term, defined as one year or less, from TV
advertising.
Home and personal brands, representing the biggest and fast-growing ad
spenders, actually saw ROI decrease as ad spending increased. Over the
course of the past three years, ad spending increased 8% versus sales
growth of 4.5%.
The Copernicus MZine (June, 2004)
http://www.copernicusmarketing.com/about/mzine/monthlyeds/june04.html
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