Allocating spending on digital-video advertising: A longitudinal analysis across digital and television

Companies have been increasing their investments in digital-video advertising at the expense of television advertising. This study examines the efficacy of such investments with a media efficiency and saturation analysis on longitudinal datasets from a national restaurant chain and a national food and beverage brand. The authors found that digital-video advertising was more efficient than television advertising, so a shift is justifiable. These differences in efficiency, however, decreased rapidly as investment levels behind digital-video advertising increased. The impact of digital-video advertising saturates early, and companies need to account for such diminishing returns in their media strategy.