The first results from the Payback Australia study by Ebiquity have found that every $1 invested in TV advertising generated a return of $1.74 for FMCG brands.
The world-first study has revealed that TV creates “by far” the best return on investment for fast-moving consumer goods (FMCG) brands in Australia, beating online video, online display, radio, press and outdoor advertising. TV was the only media in the study that generated a positive short-term revenue ROI for the nine participating FMCG brands, which include Unilever, Pfizer, Lindt, Kimberly-Clark, Goodman Fielder, Sanitarium and McCain.
According to the research, online video returned 72 cents for every dollar invested, online display 41 cents, print returned 79 cents, radio 71 cents and out-of-home 62 cents. Ebiquity also found that TV retains approximately 65 percent of its impact from the previous week, ahead of outdoor (28 percent), online video (23 percent), online display (22 percent), print (19 percent) and radio (17 percent). The results suggest that recall of TV ads is stronger and lasts longer than other media.
The nine advertisers, which collectively spend more than $200 million on advertising per year, gave Ebiquity access to three years of raw sales and campaign data. The study was conducted on behalf of ThinkTV, which was formed in May 2016 with founding members Nine Network, Seven Network, Network Ten and Multi Channel Network/Foxtel.
“Based on extensive econometric modeling, advertising on TV compared to other media types, has proven to be the clear leader for return on investment for the very large and important FMCG category,” said Richard Basil-Jones, chief executive of Ebiquity Australia & New Zealand. “The fight for every additional percentage point in product sales is a tough one for advertisers in the FMCG category, this rigorous Australian Payback study has proven that when it comes to advertising, TV is the leader for ROI.”
Kim Portrate, chief executive of ThinkTV, said: “The marketers that we talk to are trying to drive growth in really challenging conditions. 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.”