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Budget will drift to the TV Innovators in Canada, GroupM Warns

April 12, 2017


You can always save money and maximise return on investment in advertising if you refine your target audience and spend money on the lowest hanging fruit – those consumers who represent your best opportunity for driving sales.

But if brands take money away from broad awareness marketing at the ‘top of the funnel’ to do this, they will fail to replenish that low hanging fruit and their market share will shrink.

This is the warning from Irwin Gotlieb, Global Chairman at GroupM, ahead of a discussion at Future TV Advertising Forum Canada next week about the merits of TV and digital, short-term and long-term marketing and broad versus narrow targets. He is a strong advocate of targeting, including via household-level addressable TV advertising, but he confirms: “When clients over-target, they lose market share. We have seen that consistently during the last 15 years.” His advice is to keep spending on broad awareness so that targeting is additional, not substitutional.

Gotlieb has also highlighted the danger that if you get the balance between TV and digital spending wrong, you may not know at first. “If people allocate more money to digital at the expense of television, they get short-term returns and don’t recognise that they have created a huge business problem – sometimes until it is too late. In most cases it costs brands more to buy back awareness at the top of the funnel than they saved in the first place.”

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