Media Advertising Still Works For Consumers

By Margarita Nahapetyan

During the time of worst economic recession since 1930s, a study by market researcher Yankelovich and the Television Bureau of Advertising, found that media advertising still has an influence on how the consumers spend their money.

The survey has been carried out among 3,002 adults in the United States, between January 29 and February 20, 2009, to determine the role that TV plays as part of a multi-platform environment for advertising. The survey analyzed what action people took after seeing the advertisement and whether ads for the same product or service were seen in other media. The respondents were also asked which media increased awareness and interest the most, or prompted action afterwards.

The investigators also set a goal to find out how television interacts with other media sources, including new media such as the Internet, and how purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle. The results revealed new information on just where advertisements were most effective in that process, ranging from Awareness to Consideration to Preference to Purchase.

The study examined 15 different product categories, such as vehicles or auto dealers, financial services, restaurants, insurance, department or discount stores, schools and colleges, telecommunications, home improvement, commercial web sites, travel, food, entertainment, services and health care.

According to the findings, media affected 80 per cent of consumers in the awareness phase of the purchase cycling, decreasing to nearly 53 per cent at the transaction phase. When asked what media provided the most influential advertising throughout the purchase funnel, 43 per cent of people in the survey named television. Television has been chosen by 40 per cent of respondents for increasing interest and 35 per cent for increasing purchase consideration. Television made 33 per cent want to purchase, 32 per cent visit a Web site or a store and 26 per cent ultimately make a purchase.

The study found that TV was the most popular medium as far as awareness, consideration, preference and purchase were concerned. Newspapers were typically next, except with automotive, restaurants, entertainment and travel, where the Internet was holding position number two.

For most product categories, TV made the biggest contribution to increased awareness of the product being advertised. But the size of its contribution varied by category. For instance, in the entertainment category, television influenced 48 per cent of consumers in the Awareness phase, caused interest in 51 per cent, and had an impact on purchase among 39 per cent out of all respondents. In the travel category, 87 per cent of the consumers said that they had been affected by media in the Awareness phase, whereas 59 per cent reported to be influenced by media in the Purchase stage. On the other hand, in the automotive category, 81 per cent of respondents reported to be influenced in the Awareness phase, 44 per cent have become interested, and just 22 per cent said that TV affected their purchase decision.

The results contradict the popular belief that traditional media, and in particular, television, mainly has an impact on the top of the funnel, or awareness, and that interactive media is effective at the funnel's bottom, with purchase being in the last position.

The report, called "How Media Works: Advertising and the Purchase Funnel," was released during a presentation in New York on Wednesday, April 15.