Laser research blasts discounting

ITV sales house Laser unveils packaged goods research today (Wednesday) which allegedly demonstrates that brand building is more effective in increasing sales than price discounting.

Buyers say the research, which looks specifically at the yellow fats market, indicates that discounting goods is ineffective.

The research is part of ITV’s bid to build a better relationship with advertisers by supporting their brands in the fight against own-label.

Buyers say there is concern that advertisers are cutting budgets, either by switching money below the line, or heavily discounting prices to combat own-label.

Procter & Gamble, the UK’s biggest advertiser, has cut its budgets on some brands by 20 per cent.

P&G is not increasing its ITV spend (MW July 5) to match previous levels and is instead believed to be preparing to support the launch of Channel 5.