ROI on Digital Trounces Magazines by 'Factor of 2', also?
This article from Ad Age below says that online advertising delivers twice the return on investment as television. Few tableware companies advertise on television, but many do advertise in magazines and trade publications. My question: does online advertising also beat out magazines? I would imagine so. I can't imagine that a tableware ad in Tableware Today for $500, $1,000, or $1,200 can deliver as much as that amount spent online. So, the question is: does anyone in the tableware industry read Ad Age? If I were the tableware magazine people, I'd hope not. And if they do, I'd be preparing for a change in our my business model.
Kellogg Says ROI on Digital Trounces TV by 'Factor of 2' Food Giant Plans to Cut Commercial Filming up to 20% in the Next Year By Emily Bryson York Published: September 06, 2008
CHICAGO (AdAge.com) -- After taking a long look at where it's getting the best return on its marketing investment, Kellogg Co. has decided to move more money online and spend less on TV.
Kellogg Chief Marketing Officer Mark Baynes said last week that the company's online ROI for the Special K brand has surpassed that of broadcast TV in the past 18 months "by a factor of well over two." Speaking at a Lehman Brothers Back to School Consumer Conference about how Kellogg is trying to boost marketing efficiency, Mr. Baynes said: "Maybe the biggest opportunity over time is driven by what the digital environments afford, and we are working to embrace this aggressively."
$1M for every three films Among the initiatives he laid out to cut costs was a plan to slash the company's TV-commercial filming 10% to 20% in the next year. Kellogg does 350 to 400 shoots every year, and Mr. Baynes said the company will save about $1 million for every three films he's able to excise.