Home Analysis TV has the best ratio between ROI and contribution to sales

TV has the best ratio between ROI and contribution to sales

According to research from Médiamétrie – the TV industry JIC in France – and Ekimetrics, TV has the best ratio between ROI and contribution to sales of any channel. The research shows that TV makes a 40% global contribution to incremental sales (while having only a 31% investment share) and makes €5.6 ROI globally for every euro spent on the channel. At The Future of TV Advertising conference in London last week, Sylvie Kolmayer, Deputy Marketing Director, TF1 Pub, discussed this research and reviewed developments in cross-media measurement in France. She believes that by 2024, TF1 will be able to sell all of its inventories – linear and non-linear and on all devices – together. This will be done “probably programmatically and probably as well on the same currency”.

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“Advertisers still have two main goals in this fragmented media landscape: to fuel their brand equity and generate massive sales,” said Sylvie Kolmayer, Deputy Marketing Director, TF1 Pub, speaking at The Future of TV Advertising conference in London last week. She continued: “When it comes to being able to generate sales there is no debate  – TV is effective.”

She outlined research from Médiamétrie – France’s TV industry JIC – and Ekimetrics, which shows that TV makes a 40% contribution to global incremental sales (while having only a 31% investment share) and makes €5.6 global ROI for every euro spent on the channel. According to the research, TV has a better ratio between global ROI and global contribution to incremental sales than any other channel, including search, social, OOH, radio and display. The research also shows that, in France, the weekly reach for linear TV is over 90% for all target groups.

While TV does not have a problem with effectiveness, Kolymayer believes that it does have an attribution problem. She remarked: “This is because 50% of the effectiveness of TV is long-term effectiveness and it’s quite difficult to demonstrate. Usually we use marketing mixed modelling – long-term models – to demonstrate this effectiveness, and it’s more complex than what we do in digital, with attribution to the last click.”

Kolmayer believes that France experienced a major revolution in its TV measurement methodology this year. In June, the members of Médiamétrie voted to include audiences at home and out of home (who are watching on TV sets) in its measurement in 2024, as well as audiences viewing on all other digital devices. She said this development came as Médiamétrie committed to developing a cross-media measurement, which will include tools to be able to de-duplicate contact and measure incremental reach.

In 2024, TF1 expects to be able to sell all of its inventories – including linear and non-linear on all devices – together. She said this will be done “probably programmatically and probably as well on the same currency.”

Kolmayer said the French broadcaster had developed a broader range of content in AVOD and FAST channels over the last year, and has started to deploy this OTT offering on connected TVs. She revealed that TF1 had experienced a 68% increase in AVOD consumption over the year. In addition, it registered a total of 2.7 billion views on its catch-up TV and news service.

In 2022, TF1 had over 250 advertisers on addressable TV according to Kolmayer, and the broadcaster wants to build sales partnerships with social media platforms: “We have a big community of fans on social networks and we intend to develop addressable inventory there as well.”

Despite a fragmented ecosystem and changes in viewing habits, Kolmayer believes linear TV can still offer a unique proposition on the advertising market. She said: “For broadcasters, the winning combination is to keep on providing brand safe and engaging content for delivering mass reach, but to also develop addressable inventories at scale.”


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