Enabling advertisers to rethink the value of TV

How we helped Australia’s ThinkTV demonstrate that TV is the most efficient channel

Marketers are hunting growth in challenging conditions and media continues to be a significant contributor to sales, with ROI one of the crucial ways to measure business success. Ebiquity’s research provides empirical evidence that today’s TV is not only the most effective medium – making advertisers more money than any other media overall – it is also the most efficient, with the strongest retention.

Kim Portrate
Chief Executive at
Think TV, Australia

Practice & Location

Ebiquity Analytics
Office: Sydney / London

Objective

ThinkTV is funded by the Australian commercial television industry to demonstrate the effectiveness of advertising on broadcast-quality TV. Inspired by Ebiquity’s research for Thinkbox in the UK, ThinkTV wanted to understand return on investment from all media channels in four of Australia’s biggest advertising sectors: FMCG, automotive, e-commerce, and finance.

Approach

For the Payback Australia study, we gathered three years’ data covering both advertising investment and sales performance from 21 of the biggest-spending advertisers across the four target sectors. Combined investment from the advertisers totalled more than AU$500m for 2016 alone.

We then harmonised the data from the different advertisers and used econometric modelling techniques to assess dollar value return on investment for all different media channels and sectors. As well as demonstrating media efficiency and ROI by both media channel and industry vertical, our study was designed to reveal retention rates. These are the prolonged or lagged effect of advertising on consumer purchase behaviour.

Outcomes

The results from the study were presented by Ebiquity Australia’s Managing Director, Richard Basil-Jones, to more than 1,000 representatives of the APAC media and marketing at the ReThinkTV conference in Sydney.

Advertising was shown to grow brands across all categories. While each dollar invested showed a media ROI of AU$1.3 for FMCG brands, this figure was as high as AU$5.9 for automotive.

TV was the most efficient channel, followed by search (57% as efficient as TV) and radio (52%). Online video (just 22%) and online display (21%) were the least efficient.

Found advertising grows brands across four biggest ad sectors

Demonstrated TV is most efficient medium, followed by search and radio advertising

Identified best ROI for TV for automotive and financial services advertisers

Showed consistently strong impact for TV in Australia as in three UK, Thinkbox studies

Project & Process

Analysed advertising investment and ROI data from leading Australian advertisers

Conducted 36-month deep dive into 21 brands’ advertising in four key sectors

Assessed more than AU$500m total media investment across all major media channels

Surveyed media efficiency, return on investment, and retention rate