Microsoft study: Print ads more effective than online or TV

Posted by Alisa Zykova on December 28, 2009 at 11:54 AM
A study conducted by Microsoft Advertising found that for large retailers, print advertising is more effective than online ads, and more than twice as effective as television ads, The Times reported Monday. Each £1 spent on print ads garner £5 in revenue, while TV and Internet ads bring in £2.15 and £3.44, respectively.

Participants of the survey of 26 large UK retailers were anonymous, but included fashion retailers, department stores, large grocery retailers and big clothing stores. Twenty-four of the participants were "in the top 100 UK companies" when it comes to media expenditure, according to The Times.
The study concluded that Web and print advertising budgets should rise by 10 percent, while TV budgets should be lowered by the same amount.

Internet advertising, including wired and mobile, accounted for $12.6 billion in 2003, according to PricewaterhouseCoopers and SFN's World Digital Media Trends 2009. However, Internet ad spending is rapidly gaining share, and PwC predicts that in 2012, Internet advertising spending will reach $120.4 billion. Although it is still less than newspaper advertising, which is expected to be $136.8 billion in 2012, it accounts for 19 percent, only about two percent away from newspapers' share of 21.6 percent.

Professional services company Deloitte predicted that online advertising across the world might increase from 10 to 15 percent by 2012, according to The Times. The firm said even though Web advertising dropped by 5 percent during the financial crisis, it was a "much smaller" decrease than other spheres of advertising.

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