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High Media Spend Equals ROI Increase – ARC Research

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The Advertising Research Community (ARC) has provided a study of the investments’ effect on the ROI data. The analytics report includes 343 cases over three years.

According to the study, the average return on investment (ROI) per every £1 spent on media space is growing as higher the advertisers’ spending. The most active increase is happening between the annual media spend of £2 million and £10 million. Considering the ROI growth, the sum is changing from £2 to £8. When the advertisers spend over £30 million, the ROI reaches £13.

However, the study also demonstrates the ROI falling because the advertisers increased their spending by over £30 million. At the moment when the spending is from £70 to £80 million, the ROI is decreased by £2.

Among other conclusions of the research is the fact of ROI is being increased while companies use multiple media channel models. Therefore, the average ROI of £1 is £2 in case of using one or more media channels.

Econometrician Dr. Grace Kite is sure that the testing process may be influential for marketers and investors as well. It provides deep analytics and an understanding of the industry.

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