This month’s Chart of the Month shows how there are big variances in the optimal media mix between different product sectors.
It is based on data from the ‘Media Mix Navigator’, which lets brands easily explore the impact on revenue and profit that different budget levels have on budget allocation across channels.
The Media Mix Navigator tool has been engineered by EssenceMediacom and is powered by the blockbuster Profit Ability 2 databank, which takes in £1.8 billion of media spend across 141 brands during 2021-23. The brands included were carefully chosen to represent as many business types as possible. Each brand commissioned and paid for their own econometric analysis; the databank aggregated this existing data.
Media Mix Navigator enables analysis bespoke to a brand’s specific situation and attitude to risk. For this analysis, we have used an ‘average’ brand position.
This chart shows how the optimal media mix differs by category, and there are some interesting variances. For example, looking specifically at Generic PPC, the investment allocation is particularly high for sectors such as Finance, Travel and Automotive. This is explained by the fact that these sectors often deal with higher priced items which are usually ‘considered purchases’ – ones where consumers are likely to conduct online research before making a purchase decision. Similarly, Print is an important channel for Automotive and Travel, both of which benefit from extensive specialist titles that provide the opportunity to reach key audiences.
The one consistent factor throughout all the scenarios is that Linear TV is the largest single channel, although the extent to which it is the largest channel can vary greatly – e.g. higher in Retail, FMCG and Automotive but lower in Finance.
For more information, visit the Media Mix Navigator here.
For all Chart of the Month’s from the recent months, download the slides from the link above, this includes:
- July: Linear TV creates nearly half of all ad-generated profit
- June: TV has the highest weekly saturation point
- May: TV (Linear and BVOD) accounts for over half of all ad-driven profit
- April: The TV screen drives the highest ad recall of all devices
- January: TV is a trusted medium
- December: Auditory attention more resilient to distraction than visual attention
- October/November: Auditory attention more resilient to distraction than visual attention
- September: Creativity is the biggest advertising profitability multiplier within our control
- August: Sustaining ESOV essential for brands in 2023
