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Freakonomics Radio

441. Does Advertising Actually Work? (Part 2: Digital)

Nov 26, 2020
48:21

Podcast summary created with Snipd AI

Quick takeaways

  • TV advertising may be less efficient than assumed, with minimal impact on sales despite large investments.
  • Digital advertising platforms like Google and Facebook have gained significant profits, indicating the shift in advertising towards online channels.

Deep dives

Effectiveness of TV Advertising

Despite the conventional belief that TV advertising is highly effective due to significant investment, research by a marketing professor reveals a different story. The study suggests that increasing TV ad spending would lead to only a 1% increase in sales, challenging the industry's assumptions. While objections from the marketing industry exist, the findings suggest that TV advertising might be significantly less efficient than previously thought.

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