WPP Media data shows Travel and Transport brands missing out on nearly +275% potential profit growth

New UK analysis suggests that brands are collectively leaving £32bn potential profit on the table, according to WPP Media, with Travel & Transport brands coming out on top as the sector with the largest room for profit growth.  

In a study commissioned by Thinkbox, analysing £1.8bn of media spend across 141 brands WPP Media found that businesses in the travel and transport sector have significant scope to increase media investment while still generating profitable returns. These brands could increase their spend by 275% and still ensure every £1 they spend generates at least £1 of profit back - the highest of any benchmark sector included in the report.  

The Growth Gap‘s analysis highlights a wider problem: while 70% of CEOs measure marketing’s impact through YoY revenue growth and margin, just 35% of CMOs priorities the same metrics. This data shows that, as many marketers overstate the true saturation point of their media spend, it is YoY growth that takes the hit. 

Across all brands analysed, advertisers generated an average short-term profit ROI of £1.87 per every £1 spent, rising to £4.11 in the long term as campaigns build brand equity that drives future growth.  

Sidney Draper, Strategy Director at WPP Media, said: “It’s clear that advertising is highly profitable at driving growth both today and tomorrow, yet travel and transport brands are still not taking full advantage of this. In difficult times, it’s understandable that marketers spend with caution, but a headroom of 275% means that competitors who invest in their growth have a real opportunity to get ahead.”

Key findings include: 

• UK brands are leaving an estimated £32bn of potential profit growth behind. 

• The average brand could double advertising investment and still generate a profitable return. 

• Travel brands show +175% profitable headroom versus current average annual media investment – the highest of all categories.  

• Increasing advertising spend up to the point where every additional £1 still returns at least £1 profit could unlock 11% headline profit growth. 

• Travel and transport brands generate £1.19 of profit per £1 spent in the short term, and £2.62 in the long term.