Thursday, January 18, 2018

TV ads more effective than digital



The news story talks about Mars’s CMO claiming that TV ads are more effective for their food business than digital. Also, the media ad split between TV and digital platforms for Mars is 60/40. It is opposite of the general perception that online spending is the number one choice of marketers in CPG companies.

This story shares a great case of marketer’s decisions with the allocation of marketing dollars between traditional media platforms (such as television ads) vs digital platforms (mobile ads). As we discussed in the class also, digital media ad spend is increasing rapidly and outpacing all other channels ad spend. However, the article makes a good point about knowing the metrics that measure the effectiveness of each dollar spent on advertising.

As we hear repeatedly that its crucial to know your target audience. The news story uses Mars’s pet food business as an example of a market segment that is easily identifiable online and hence Mars spends more dollars on digital ad spend for that segment vs the traditional businesses. So, clearly, digital marketing strategy is not one size fits all approach and needs to be treaded cautiously.

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