In Australia, groceries and consumer packaged goods advertisers get returns of $1.74 for every dollar they invest in TV advertising. This is according to the first set of data from Payback Australia, a study from Ebiquity for ThinkTV, the industry marketing and research body (the Australian equivalent of Thinkbox in the UK).
The findings, will be presented later this week at the ReThinkTV Marketing Forum, represents three years’ worth of client data, representing around $200m in ad spend, from brands including Unilever, Kimberley Clark, Goodman Fielder, Lindt, McCain and Sanitarium. They showed that TV is the only channel that achieves a positive ROI.
The study shows that a large majority of sales are baseline sales, with 73% created by customers’ need to buy certain products, which is influenced by previous brand experiences, recommendations and existing brand awareness. Another 24% is influenced by in-store marketing activity, with 3% driven by advertising. Of this 3%, 82% is driven by TV advertising, which according to Richard Basil-Jones, Ebiquity’s Managing Director for Asia Pacific, then feeds back into base sales.
TV is also the most effective medium at delivering retained advertising awareness; 65% recall after a week. Out-of-home comes next with 28%.
Wave two of the study, due out in 2017, will examine how media channels work together in driving sales.
Taken from a piece in the Australian Financial Review Nov 27 2016
To see a synopsis of the first wave of results presented at the ReThinkTV Marketing Forum please click here.