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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

Sustainability trends brands can expect in 2020

​Marketers have made strides this year in sustainability with the number of brands rallying behind the Not Business As Usual alliance for action against climate change being a sign of the times. While sustainability efforts have gained momentum this year, 2020 is shaping up to be the year brands are really held accountable for their work in this area.

Ben King

CSR manager & sustainability expert, Finder

The trouble with Scotty from Marketing

As a Marketer, the ‘Scotty from Marketing’ meme troubles me.

Natalie Robinson

Director of marketing and communications, Melbourne Polytechnic

If you think it can benefit both consumer and seller then it would be great

Simon Bird

Why Ford is counting on the Internet of Things to drive customer engagement

Read more

It's a good idea. Customers really should control their data. Now I understand why it's important.

Elvin Huntsberry

Salesforce CMO: Modern marketers have an obligation to give customers control of their data

Read more

Instagram changes algorithms every time you get used to them. It really pisses me off. What else pisses me off? The fact that Instagram d...

Nickwood

Instagram loses the like in Australia; industry reacts positively

Read more

I tried www.analisa.io to see my Instagram Insight

Dina Rahmawati

7 marketing technology predictions for 2016

Read more

The saying is pretty tongue in cheek. It's not saying that marketers are bad people, nor that they don't take themselves seriously. There...

LYF Solutions

The trouble with Scotty from Marketing - The CMO view - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in