3 Good Reasons Your Brand Should Spend More in Digital

My first boss once offered up this gem of wisdom:

“numbers are your friend”

By this, he meant that data and analysis could usually win the day in supporting your case and getting people to agree to what you were recommending.

Digital Advertising -- Numbers are Your Friend

Imagine my surprise then, when I first looked at a comparison of media consumption and ad spending for TV and On-Line. By the numbers, consumers spend about 1/5 the time on-line as they do watching their old favorite, TV. Yet, advertising spend on-line is only 1/10 of TV ad spend. What gives?

Reluctant Digital Advertisers

Advertisers are still reluctant to put their dollars into digital. I see this phenomenon with advertisers large and small, sophisticated and unsophisticated.

And the barrier is often not Marketers themselves, but senior management that is still rooted in a TV only paradigm. What’s needed are some friendly numbers.

3 Reasons to Advertise in Digital

Why advertise in Digital? Here are 3 good reasons why:

1.  Market Mix Modeling Shows that it Works – Most CPG companies use market mix modeling to understand the single variable impact of each marketing element on sales. This approach works especially well for larger campaigns where the sales response of even smaller spend digital campaigns can be measured.

Many companies do Market Mix Modeling, including Nielsen (disclosure: I work at Nielsen), and a number of them have a point of view on the efficacy of digital advertising spend.

In general, when we look at Mix Modeling results across many brands and campaigns, we see that the ROI (sales lift/investment) for On-Line is slightly higher than TV, and significantly higher than all other major marketing elements. So, digital advertising works.

2.  TV + Digital is more Effective than Either Alone – Marketers have a strong belief that integrated cross-media campaigns should work better than a single media campaign.

Neuro-science helps us understand why. The human brain processes information differently by media. So, brain activity and processing is different for TV and On-Line. And more brain space generally equals more impact.

Cross-platform measurement from Nielsen tells us that the same TV ad works better if a consumer has also seen the Digital version, even when adjusted for frequency. Said differently, when it comes to TV + Digital, 1+1=3.

Investing in digital actually makes your TV advertising work harder for you—yet another good reason to invest in Digital.

3.  Digital Extends Reach at Lower Cost – One of the key reasons to extend a campaign across media is to extend reach. And digital is actually quite good at building campaign reach among difficult to reach TV viewers.

What’s less well know is that with smart planning, Advertisers can usually extend campaign reach by adding digital to TV, but at a lower total cost. That’s right, you get more reach at lower total cost than TV alone.

Numbers are Digital Advertising’s Best Friend

Maybe my first boss was right after all. Numbers really are digital advertising’s friends. The numerical trifecta of higher ROI, improved TV performance, and greater reach at lower cost is compelling rationale for moving more of your spend into the Digital realm.

So, the next time your CEO or CFO challenges you on digital ad spend, just remember that “numbers are your friend.”

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One Response to 3 Good Reasons Your Brand Should Spend More in Digital

  1. Roger Cole says:

    one of my bosses at P&G made a similar point about data, but not as kindly… it was something like this “young man, if it is your opinion versus my opinion – you loose; if it is your data versus my opinion – well that is open for discussion.” his name was Ben something and he was a crusty old Princeton alumnus in R&D.

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