Maximising advertising budgets: Key takeaways from Thinkbox’s latest event
In today’s fast-evolving advertising landscape, businesses are constantly seeking ways to optimise their marketing investments.
At a recent ThinkBox event, industry experts shared research that challenges conventional methods and provides fresh insights into ad spend distribution, the importance of context in ad recall, and the impact of cutting TV budgets. Here are our key takeaways:
Are businesses really spending more on advertising?
Anthony Jones, Head of Research at Thinkbox, addressed the common perception that advertising spend is at an all-time high. While overall ad spend appears to be booming, closer analysis reveals that most of this growth comes from search, native (online display) and social media - primarily driven by small-to-medium advertisers (SMAs).
Jones argues that for many SMAs, spending on search, native and social is less about advertising and more akin to an essential operational cost, similar to purchasing a ‘shopfront’. When excluding SMAs - that account for an estimated 80% of search, native and social spend - the traditional media share jumps from 25% to 62%, with TV leading the way.
This raises an important industry question. Should advertising spend data be reported separately for SMAs and medium-to-large advertisers (MLAs) to improve market transparency, provide a more accurate picture of trends, and enable more strategic investment decisions?
Context matters: The power of shared viewing on ad recall
New research presented by Jones revealed that ad recall is heavily influenced by contextual factors beyond the media platform itself. By analysing over 300,000 data points from 87 variables, researchers identified the right mix of conditions that can boost next-day recall by more than six times compared to the least effective scenarios.
Key findings include:
Shared viewing boosts next-day recall by 23% compared to solo viewing. Consumers are twice as likely to repeat or mimic ads when watching with others and 3.2 times more likely when watching with youngsters.
Device matters as ads viewed on a TV screen deliver 34% better recall than on a computer and 60% higher recall than on a smartphone or tablet.
Jones reinforced that TV is the dominant shared viewing platform, making it a critical medium for brands aiming to maximise ad impact. This research underscores the need for advertisers to focus on placing ads in the right environments rather than just chasing reach.
Cutting TV spend: The profitability risk
Richard Kirk and George Gloyn from EssenceMediacom demonstrated the risks of reducing TV budgets using the Media Mix Navigator tool. This free platform helps brands optimise media plans based on budget, brand size, and category.
Their analysis of 52,000 scenarios across 7,488 potential brands revealed a clear trend: removing TV from the media mix leads to an average 24% drop in profit within three months. After extrapolating this data over two years, the industry could lose billions in profit from suboptimal budget cuts.
However, not all budget reductions have to be damaging. Their research suggests that strategic reallocation of spend - rather than simply cutting TV - can minimise profit loss in both the short and long term. The key takeaway? Businesses should avoid indiscriminate cuts to TV spend and instead adopt a calculated approach to budget optimisation.
Final thoughts: A smarter approach to advertising strategy
This Thinkbox event highlighted key areas where advertisers can improve their strategic approaches:
Separating SMA and MLA advertising spend reporting - the industry should begin distinguishing between these groups to enhance market transparency and support better investment decisions. Accord is proactively supporting this Thinkbox initiative.
Prioritising context in ad placements - advertisers should focus on environments that encourage shared viewing, maximising ad recall and engagement.
Thinking long-term with budget decisions - cutting TV budgets may offer short-term savings but can lead to significant long-term profit loss. Businesses should take a data-driven approach to optimise their media mix.
By leveraging these insights, advertisers can make smarter, evidence-based decisions that drive both immediate impact and long-term success.
READ MORE: Trends in TV 2025 by ThinkBox
Ansley Hirstein
Our Strategy and Research Executive, Ansley, combines fresh perspectives with a strong analytical foundation to develop innovative marketing strategies for our clients.
