Advertising: United they stand

László Karácsony
strategic and marketing director
Atmedia
Atmedia has done a comprehensive survey on how campaigns in different channels of media influence product sales in the FMCG market. In this sector about 90 percent of advertising budgets is spent on television commercials. Atmedis’s strategic and marketing director László Karácsony told: they worked together with Impetus Research and used sales data from the GfK consumer panel, and they estimated the net/net based on Kantar list price spending with the help of data from the Hungarian Advertising Association (MRSZ). Atmedia analysed 3 years of data (2017-2019) on 5 market players on a week-by-week basis. The method was the same as in former years, they prepared a statistical model.
Media channels and spending
In the first stage Atmedia specified the average net/net spending per week for the 5 retail chains in all 3 media types in the examined 3-year period: television – HUF 16.288 million, display/video – 871,000, radio – 1.574 million. In this period the average weekly gross sales revenue per retail chain was HUF 6 billion in the categories analysed in the GfK consumer panel. Atmedia has found that every form of advertising entailed a significant sales growth and ROI.
Television and radio have a combined effect
Atmedia also examined what happens to the sales revenue if HUF 500,000, 1 million, 1.5 million or 2 million is added in display/video or radio to the television advertising budget. The result was that that both channels can strengthen the effect of television advertising. Atmedia thinks online display/video adds incremental reach to the effect of television, while radio adds incremental frequency.
Less television, still bigger growth
But what happens if we use all three platforms at the same time? Well, the sales results will be the best with this strategy. What is more, Atmedia has observed the following: if the television advertising budget increases by HUF 3 million, the sales growth will be 1.7 percent. If we only spend HUF 2 million more on television commercials and spend the half of the remaining HUF 1 million in the other two channels each, the sales growth will already be 3 percent. If we only spend HUF 1 million more on television and HUF 1 million on online display/video and radio each, the sales growth will be 3.8 percent! //
Related news
Mercadona Becomes Fourth Largest Retailer In Portugal
Mercadona reported the highest market share growth in 2024 in…
Read more >MBH Bank Macroeconomic Outlook: Growth Prospects and Challenges in 2025
According to the latest quarterly macroeconomic forecast from MBH Bank’s…
Read more >European Purchasing Power 2024: Hungary in 30th place
According to the latest analysis by GfK, the average purchasing…
Read more >Related news
OKSZ: margin is not profit!
The international food retailer member companies of the National Trade…
Read more >Viktor Orbán on Kossuth Radio: traders cannot add more than 10 percent to the purchase price
Traders cannot add more than 10 percent to the purchase…
Read more >GKI Analysis: Why are food prices constantly rising?
In recent times, the rise in the prices of basic…
Read more >