New study points to TV offering best ROI to FMCG brands

New $1 million ThinkTV study into TV advertising effectiveness compares broadcast channel to other media including online, out-of-home, print and radio

The first results of ThinkTV’s $1 million study into TV advertising are in and suggest the broadcast channel provides the best return on investment for FMCG brands in Australia.

According to the findings of the new Payback Australia study produced by marketing analytics firm, Ebiquity on behalf of ThinkTV, every $1 invested in TV advertising is generating at return of $1.74. The report also claims TV to be the only media to have generated a positive short-term revenue ROI for the nine participating FMCG brands, including Unilever, Pfizer, Lindt, Kimberly-Clark, Goodman Fielder, Sanitarium and McCain.

In contrast, the study claimed online video returned $0.72 for every $1 investment, while online display came in at $0.41. Print was the second-highest in terms of return at $0.79 for every $1, radio was $0.71 and out-of-home was $0.62.

The results were based on three years of raw sales and campaign data from the nine advertisers, which spend $200 million on advertising each year. The study used econometric modelling to compare TV to other media types.

Ebiquity also said TV retains about 65 per cent of its impact after the previous week, ahead of outdoor (28 per cent), online video (23 per cent), online display (22 per cent), print (19 per cent) and radio (17 per cent).

ThinkTV announced its intention to kick off the $1m study in August as a way of quantifying the value and return on investment for TV advertisers. It comes off the back of Ebiquity’s work with TV marketing body, Thinkbox, on the effectiveness of advertising and different media channels conducted in the UK. That study looked at more than 4500 ad campaigns across 10 advertising sectors for seven years and found TV advertising to be twice as effective at creating sales uplift than the next best performing medium.

“The marketers that we talk to are trying to drive growth in really challenging conditions,” commented ThinkTV CEO, Kim Portrate. “One of the few levers to grow your business is media. Advertisers in the consumer packaged goods industry – covering pharmacy, liquor and grocery – know the importance of retailer in-store promotions but they also know it comes at a cost and is short term.

“When it comes to advertising and driving sales, the Australian Payback study and other global studies continue to prove that TV leads the way.”

Think TV is releasing the results of its Payback research in three stages, with the first to be discussed at its inaugural ReThinkTV Marketing Forum in Sydney on 30 November. The second and third wave of findings are due for release in Q1, 2017.

Results from the Payback research in Australia
Results from the Payback research in Australia


Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

Latest Podcast

More podcasts

Sign in