Advertising in the short and long-term

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It has never been more important to untangle the short and longer-term effects of advertising. 

In a recession it is easy to focus on the short-term, but that can be damaging to the brand by allowing a competitor to overtake in the coming year with a longer-term strategy.  This can devalue the brand, leading to reduced opportunity to charge a premium price, and less resistance to competitor advertising campaigns. 

But, it is not the case that advertising needs to be either short or long-term. What if you could do both at the same time? 

A recent new cross-media investigation, involving independent research by Nielsen, Napa and GfK, commissioned by Meta determines how advertising drives longer-term growth.  Five independent studies were conducted across different countries and categories in Europe to calculate the short and long-term ROI of advertising across different media channels. 

The importance of looking at marketing effectiveness in the long-term, to factor in the impact of brand-building in addition to short-term performance marketing, was highlighted as key in the study. Advanced econometrics and market-mix-modelling was used in this research to find, on average, 60% of total ROI from advertising campaigns was delivered in the longer-term. 

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Taking into consideration that the length of buyer journeys differs between sectors, varying results were obtained in the study. Long-term effects of advertising were found to have notable additions to ROI; 42% of advertising ROI in FMCG, 59% in Retail & Telco and 76% in Tech & Durables. 

This clearly shows we don’t need to make such a definite distinction between focussing on the short or long-term, but that there is merit in placing importance on them both. 

It is generally recommended for marketers to have a well-rounded, long-term approach to their media strategy, rather than solely focusing on short-term gains. Investing in a range of media channels can help ensure a more consistent and effective brand presence, as well as providing opportunities to reach different audiences and to adapt to changing market conditions. 

Our next blog will focus on different media channels and their advertising effectiveness in the short and longer-term. 

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