Kantar, the world’s leading data, insights and consulting group, has revealed that 72% of Filipinos are more likely to purchase a product when it is advertised on both television and Facebook, which is 3.4x higher than exposure to TV alone. This result is based on Kantar’s recent research on the impact of offline and digital media investments on consumers’ purchasing behavior. This can help brands gain a better understanding of platforms and tools that would best reach their consumers and help them achieve sustainable growth during this challenging time.
“COVID-19 is not only highlighting how difficult brand growth is, it is also challenging companies to achieve sustainable growth,” Ledz Lim, Experts Solutions Director, Kantar Worldpanel Division said. In 2019, Kantar noted that only 59% of brands registered growth compared to the year before. In addition, only 46% of brands were able to drive sustainable growth in both 2018 and 2019.
Based on data from Kantar, TV continues to reach 4 times more audience than Facebook but at a higher expense for brands. To reach a thousand Filipino households, brands have to spend around PHP 2,000 on TV ads. Meanwhile, Facebook campaigns only cost brands PHP 1,000 to reach the same number of households. Advertisements on Facebook also contribute 19% incremental sales and can generate almost double the return of the amount spent by brands.
Lim said that brands should leverage the shift from predominantly traditional advertising via print, TV and radio to digital campaigns and advertising mediums, which include social media channels. She added that TV and Facebook have a complementary audience reach that presents an opportunity for brands to drive growth.
On average, 44% of a Facebook+Instagram campaign reaches light and non-TV viewers, while TV’s reach to light TV viewers is only 28%. Combining strategies and leveraging both platforms is therefore crucial as light and non-TV viewers account for roughly 40% of brand buyers.
Engaging repeat, new consumers in their buyer journey
According to Kantar, TV combined with Facebook advertisements proved to be more effective for bigger and more established brands. Together, Facebook and TV are able to engage 69% and 68% of repeat customers, respectively.
Meanwhile, Facebook is more favorable for smaller and new brands. Brands with less than 20% market penetration have a 1.5x greater chance at penetrating the market and a 3.7x higher chance at launching their brands on Facebook compared to tapping the TV medium. Kantar added that for smaller brands, Facebook is better in driving incremental sales from new and light buyers which is 9% higher vs TV
In addition, advertisements placed on Facebook appeal more to ‘impulse’ FMCG (fast moving consumer goods) categories compared to TV. This also applies to brands that provide beverages and home care products.
“The media landscape is changing, especially with the ongoing pandemic. It is important for brands to understand consumer behavior in order to select the platforms, whether traditional, digital or both, that would allow them to attract repeat customers or new buyers,” Lim said. “This is the time for businesses to start investing in platforms that best suit their needs to help sustain their brand’s growth in the years to come.”
Kantar is the world’s leading data, insights and consulting company. We understand more about how people think, feel, shop, share, vote and view than anyone else. Combining our expertise in human understanding with advanced technologies, Kantar’s 30,000 people help the world’s leading organisations succeed and grow.
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