Effectiveness of TV in customer acquisition & retention
27th September 2022
Understanding the impact of TV on customer acquisition and retention has been sought after for a decade
Using our unique, single-source data, that enables brands to understand consumer behaviour from media consumption to purchase, we were able to look at how TV campaigns for Muller, Yeo Valley Activia and Actimel affected shopper behaviour online and offline and draw a direct line between the brands’ media spend and consumers’ actions.
Here’s what we found
Frequency and brand loyalty
Even though the brands differ in terms of messaging (especially Muller, which has less of a health emphasis), there are significant overlaps across the board, indicating that customers are willing to switch brands.
However, the more TV ads a customer was exposed to from a specific brand, the more likely they were to buy only from that brand indicating TV is not only effective at generating sales, but also brand loyalty.
Missed targeting opportunities
Many targeting opportunities are being missed for these brands. Yeo Valley’s TV campaign would have been more effective had more Actimel customers been reached. Similarly, Actimel failed to reach as many Yeo Valley customers as they could have – this appears to be a two-way street that's going unexploited by both parties.
For the more health-focused brands there are indications that it's easier to convert new people into the category, Actimel was successful in converting non-yoghurt buyers. However, having a high number of purchases does not make it easier to drive more sales through TV advertising – existing customers are less affected by media, and TV works better for acquisition than retention.
Activia and Actimel have the strongest uplift from TV advertising, indicative of a generally good responsiveness to health-based messaging.
With advertising budgets under scrutiny as the UK teeters on the brink of recession, marketers need to know where to make their next investment with confidence. Knowing what strategy will not only keep existing customers but also attract new ones amid the cost of living crisis is vital.You can find the full report here