Digital advertising vs offline channels
Are your campaigns efficient at driving incremental sales and ROAS for CPG?
Optimising advertising spend has never been more important. Brand marketers are having to work extremely hard to make an impact and capture share of wallet. They are facing pressure from all sides: rising costs, the need to fight for shrinking budgets, and consumers who are making choices in the context of the cost-of-living crisis.
Advertising spend is increasingly shifting to digital channels. In its Global Entertainment & Media Outlook, PWC reports that digital advertising spend grew 22.6% in 2021, and predicts that revenue will expand at a 9.1% CAGR to US$723.6 billion by 2026. This trend is raising tough questions for brands, as traditional channels come under greater scrutiny, and the need to be able to prove concretely to the business that advertising is worth the investment heightens.
They need to know whether digital advertising provides an efficient way of achieving return on ad spend (ROAS). Can it generate additional sales whilst optimising ROAS? Is the perception that digital advertising is cost efficient an accurate one?
Media exists in a complicated, multi-dimensional environment. This means we need to use powerful statistical techniques to uncover the relationships between cause (advertising) and effect (sales). Not only this, we also need to understand precisely how much sales can be attributed to advertising as opposed to other marketing levers, such as promotions.
With this requirement in mind, Kantar’s Worldpanel Division, ran an analysis, commissioned by Meta, that aimed to achieve a fresh understanding of how advertising via digital channels and TV work at driving incremental sales and ROAS for Consumer Packaged Goods (CPG) brands.
We need to understand precisely how much sales can be attributed to advertising as opposed to other marketing levers
The objective was to understand the effectiveness of digital advertising – in this analysis, on Facebook and Instagram – versus offline channels.
Alongside the tough questions mentioned above, we wanted to dig down deeper into the relationship and potential synergies between online and offline channels, exploring:
Where advertisers choose Facebook and Instagram in combination with TV in their mix, are the campaigns efficient at driving incremental sales and ROAS for CPG?
Can they drive both sales growth and the acquisition of new shoppers?
Does TV serve specific objectives that Facebook and Instagram cannot?