Subscribe Login
Packaging And Design

Investing €1 In Advertising Yields ROI Of €5.44, Research Shows

By Donna Ahern
Investing €1 In Advertising Yields ROI Of €5.44, Research Shows

Every €1 invested in advertising yields a net return on investment of €5.44 for brands operating here, according to new research released today by Core Media.

The report, entitled Marketing Multiplied, also highlights how creatively-awarded campaigns are six times more efficient than non-awarded campaigns in growing market share. It is written by economists Chris Johns and Jim Power and Alan Cox, CEO of Core Media.

One of the key findings in the report shows that In order to achieve maximum effectiveness, marketers should allocate 60% of their budget on long term brand-building activity and 40% on short term sales activation.

Jim Power, economist and co-author of the Marketing Multiplied report, said the evidence is clear about the impact advertising has on economic growth. He said, “Since the 19th century, economists have analysed and argued about advertising. But from both a theoretical and empirical perspective the position is clear - advertising is good for growth, promotes competition, helps innovation and leads to lower prices.

“The point about growth is worth emphasising as it is the least studied link to advertising. The evidence, however, strongly suggests that advertising is extremely important for the overall level of economic activity. It oils the wheels of economies, provides jobs and boosts growth in an unambiguously positive way.”


Despite the evidence about the significant contribution marketing makes to the economy, the Marketing Multiplied report highlights the fact that boardrooms are still not fully convinced of the importance of marketing and advertising in driving business growth.

According to Patrick Coveney, CEO of Greencore Group plc and Chairman of Core Media, “The absence of marketers from boards cannot be good for companies. It means that a critical part of the business is not being given sufficient voice or respect and it goes a long way to explain why marketing budgets are thought of as an expense rather than an investment. Boards tend to be dominated by people with financial or engineering backgrounds, who are not necessarily trained to understand the consumer, the competitor landscape and external environment in a way that a skilled marketer can.”

Marketing Multiplied is the first ever large scale study that reviews the impact of marketing communications from both a macro-economic and micro-economic basis.

© 2017 - Checkout Magazine by Donna Ahern

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.