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Warc report reveals successful brands split 69% of budgets between TV and digital

According to Warc, successful brands spent an average of 69% of their budgets on TV and digital combined through the 2013 to 2017 period. In the case of food brands, this number went up to 81%.

These were some of the findings from Warc’s recently released Media Benchmarks Allocation report. They were arrived at after analysing 840 case studies from its database of effective advertising campaigns. The cases came from 64 countries, with the US and the UK accounting for 14% each. The report covered the period 2009 to 2017.

Budgets were the biggest factor leading marketers to decide whether to skew towards television or digital. Warc found that  successful and prize winning low budget campaigns were digitally focused. At the highest budget levels, TV accounted for over 60% of a brand’s ad investments.

Another deciding factor was the sector of the advertiser. Government and not-for-profit organisations with traditionally low budgets gravitated towards digital, as did transport and tourism, a category where a lot of booking and research happens online.

For the purpose of the study, spend of up to $500,000 was considered low budget, while mid budgets went all the way up to $10 million. Anything over that fell in the high budget category. To account for the vastly different costs and conceptions of what constituted a high or low budget, the team took into account purchase power parity to get an equivalent local currency.  

Commenting on the findings in the report, Warc’s research editor Amy Rodgers said: “Gaining the right balance of TV, which delivers reach, and digital, which supplements reach and aids activation, is a critical component of media allocation. The findings suggest that when extra budget is available, it is often invested in TV.”   

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