Understanding the impact of media in Spain

How Publiespaña quantified the role of different media channels for FMCG brands

Our experience with Ebiquity has been exceptional. They have carried out a very rigorous, objective and methodologically perfect work, and clear and concise in the presentation of the conclusions; and all this on time. The experience they have with similar ROI studies in other countries, as well as their knowledge of the advertising strategies of their advertisers' portfolio, made us bet on them as collaborators of a pioneering study in Spain and that brings us objectively to the formats and media channels effectiveness when measuring the advertisers return on investment. The involvement, dedication and treatment with the team have been unbeatable.

Orlando Gutiérrez
Operational Marketing Director at
PUBLIESPAÑA

Practice & Location

Advanced Analytics
Office: Madrid

Objective

Publiespaña is the commercial subsidiary of Mediaset España, responsible for advertising and the commercial exploitation of Mediaset’s seven TV channels. Publiespaña wanted to understand the role and impact of different media channels on fast-moving consumer goods (FMCG) brands, to help its clients make optimal advertising investments to independently understand the rapidly-evolving Spanish media marketplace.

Approach

Our Analytics practice has an established track record and a global reputation for using econometric models to understand the levers of marketing effectiveness. In recent years, we have researched and published cutting-edge reports on the proven role of media with Thinkbox in the UK and ThinkTV in Australia.Working with Publiespaña, we created a structured database of more than 200 market mix models detailing the experiences of more than 30 FMCG brands operating in the Spanish market. The database included three years of historical data, and the study focused on food and beverage brands. We analysed all factors that might impact sales. Our modelling included all media channels, online and offline, but also covered both market factors (base price, pricing, competitor activity, distribution, and promotions) and socioeconomic factors (the health of the economy, weather, and holidays). This comprehensive approach allowed us to consider and weight the relative and absolute contribution of all different inputs on business outcomes.

Outcomes

Our analysis established that TV still makes by far and away the largest single contribution to sales performance, both short-term and long-term. Short-term, 95% of sales contribution comes from base line and other market factors, for example: base price, distribution, etc, with 5% of sales contribution from media, of which TV accounts for 95.5%. The next biggest contributor to short-term sales was shown to be online advertising, representing just 3.8% of total impact. We showed that TV is the most efficient channel, too, and far from being at saturation levels. Indeed, it is the medium with the most room for growth. Internet advertising is most effective for lower-budget campaigns (€200,000 spend and below). Above that level, TV routinely and strongly outperforms all other media lines, including internet.It is well-known that most of advertising’s benefit is delivered over the long term. Our analysis found that TV is the most efficient channel overall in the long-term, too, and it delivers a combined short- and long-term ROI of €2.09 for every euro invested. Looking across all the studies, we set the benchmark for short-term plus long-term ROI of TV for all FMCG brands at €1.89.

Established TV as most important medium to drive short-term ROI

Demonstrated TV as most efficient medium long-term

Set TV ROI benchmark for Spanish market at €1.89 for every euro

Showcased findings at high-profile 2019 AEDEMO event

Project & Process

Created a structured database of 200+ econometric models

Integrated findings from 30 FMCG brands over 3 years

Developed evidence-based benchmarks for FMCG ROI

Aligned methodology with previous UK, Australian studies