PricewaterhouseCoopers LLP published the findings of its study into the effectiveness of advertising via international media – commissioned by CNN International. This study found that increased advertising in international media leads to stronger brand preference, more brand recommendations, and, crucially, more product sales. The pan-European analysis, covering travel, luxury goods and financial services…
PricewaterhouseCoopers LLP published the findings of its study into the effectiveness of advertising via international media – commissioned by CNN International. This study found that increased advertising in international media leads to stronger brand preference, more brand recommendations, and, crucially, more product sales.
The pan-European analysis, covering travel, luxury goods and financial services categories, employed three separate approaches to assessing the effects on sales and brand attitude shifts between consumers with high and low levels of exposure to international media. In fact, consumers who have relatively high consumption of international media attach a greater importance to brand over other drivers of choice.
Thomas Hoehn, partner, PricewaterhouseCoopers LLP, who led the study, said: “At a time when being accountable for ad spend is more important than ever, international media provides an effective platform to strengthen brand preference amongst a highly valuable consumer group.”
Didier Mormesse, Head of International Research, CNN International explained: “In the absence of an industry association for international media, CNN as market leaders undertook this project, the largest research initiative in this field, to demonstrate the tangible impact of advertising via this media for our industry as a whole. We wanted to work with a trusted partner to develop a model which is robust enough to warrant further iterations in other categories. We hope this will be the start of meaningful research for an industry that has been underserved to date in this regard.”
This new analysis suggests that an extra ten per cent of advertising expenditure in international media, by the seven national tourist boards studied (an average of $3m per year between 2001 and 2007), could have resulted in an average of 70,000 of additional visitors trips each year.
“These visitors are likely to be the type targeted by international media – frequent travellers with large discretionary spend,” Hoehn explained.
The study found that consumers that have higher levels of exposure to international TV and print media tend to value brands more highly, especially those brands that are more heavily advertised. For brands in the travel and financial services sectors (banking, insurance and consulting brands), propensity to recommend brands is also greater for respondents who consume more international media.
It also proved that the expectation to purchase a wide range of luxury brands increases in line with international media exposure. For luxury watches in particular, higher exposure to international media increases the level of importance consumers place on the good’s brand, with an accompanying decrease in the importance of price.
Using survey and advertising data for over 85 brands, PwC found a statistically significant, positive relationship between advertising expenditure and brand preferences.
These findings were strengthened by analysis of the responses to the specially commissioned consumer survey. The results of the survey suggest that a leading hotel brand with high advertising expenditure in this media market elicits stronger brand preferences in all countries tested compared to a brand which has low advertising spend in international media. In the luxury watch brand category, there is a clear positive correlation between advertising expenditure in international media and the strength of consumer brand preferences.
Hoehn concluded: “International media is a valuable channel for reaching valuable customers. In all categories we studied, advertising spend is crucial, affecting brand preference, brand recommendations and, ultimately, product sales.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
