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! //