TV Runs Down All Comers For Car Advertising ROI: Ebiquity

TV Runs Down All Comers For Car Advertising ROI: Ebiquity
SHARE
THIS



A $1 million study has shown that TV creates the biggest return on investment for automotive brands in Australia, almost twice as much as the nearest competitor, radio, and almost three times as much as the next, search.

The second wave of the “Payback Australia” study by Ebiquity, a leading, independent marketing analytics firm, found that every dollar invested in TV advertising generated a sales return of $8.90, easily beating every other media including social, online display and out-of-home. The return for all media in the automotive sector was far more dramatic than FMCG as reported late last year.

Ebiquity was given access to three years of raw sales and campaign data by four automotive advertisers, from small spenders to the very largest. Collectively these four brands spend more than $150 million on advertising per annum.

The results of Ebiquity’s econometric modelling research* provide unprecedented quantitative insights into the effectiveness of the local automotive category’s $700 million-plus annual media spend.

“The study highlights the power of advertising in the automotive sector, with all major forms of media delivering a positive return on investment. Leading the way on ROI was TV,” said Richard Basil-Jones, Managing Director of Ebiquity – Asia Pacific. “Radio also drives a strong ROI of $5, though investment is much lower down the diminishing returns curve than TV.

“With over $700m invested in advertising in 2016, it is a crucial growth lever for the car manufacturers. When the marketing world is placing greater focus on business outcomes, this extensive econometric modelling for the auto category has proven how critical TV is within the media mix. When it comes to the Australian automotive sector, TV is a critical factor in driving sales.”

Basil-Jones added: “We have worked hard to understand the return on ‘digital’ media in more detail. We were able to provide an ROI measurement for online display and social activity as we had both impressions data and spend.

However, we were unable to provide an average online video ROI as this same level of detail was not made available by all participants.”**

Kim Portrate, Chief Executive of ThinkTV, said: “Marketers need to create growth in tough conditions and media continues to be a significant contributor to sales. Ebiquity’s findings show this to be true in the automotive sector with media contributing 12% to sales of new cars which was even more significant than the 3% uplift identified for FMCG brands in the first phase of Payback Study released late last year. Media also plays a greater role than short term price promotions in the automotive sector, contributing twice as much revenue.

“Ebiquity’s extensive econometric modelling shows that TV is the clear winner in terms of effectiveness for brands looking to grow sales. At $8.90 for every dollar invested, TV’s performance is head and shoulders above the average media ROI for other media, which is $2.37. When it comes to advertising driving sales the Australian Payback study and other global studies continue to prove that TV leads the way.”

*Econometric modelling attempts to estimate the relationship between sales and the factors that drive sales. Econometrics uses mathematical equations to isolate all of the different factors that can influence sales at any one time. For example: If an advertiser runs an advertising campaign and sees a big increase in sales, that increase may also have been influenced by dealer promotions. Without stripping out the impact of promotions, one would over estimate the impact of advertising. Using econometrics removes the risk of such errors, allowing one to accurately estimate the direct dollar impact advertising has had on sales.

** Ebiquity measured online video but was not able to calculate a category average ROI because not all participants provided specific spend for online video. The limited evidence that was available suggested ROI for online video advertising was among the lowest but there was not sufficient data to provide an average figure.

Please login with linkedin to comment

Latest News

IMPACT Communications Re-launches With New Insights Practice
  • Marketing

IMPACT Communications Re-launches With New Insights Practice

PR agency IMPACT Communications has re-launched as The IMPACT Agency, bringing a new insights practice to market with humans – not just data – at its core. A true hybrid of PR, creative and digital disciplines, The IMPACT Agency is independently-owned by PR pioneer and managing director Nicole Webb (pictured above). The agency is working […]

TBWA And Eleven Partner With Gatorade & Usain Bolt For The ‘Bolt Rate’
  • Campaigns

TBWA And Eleven Partner With Gatorade & Usain Bolt For The ‘Bolt Rate’

Gatorade, in partnership with Eleven and TBWA, has created a new explosive cricket metric which has the potential to change the way the game is analysed, discussed and celebrated by fans. For the first time ever, the new measurement – Bolt Rate – will record the players’ run speed between wickets during the summer of […]

Keep Left Wins Content Marketing Account For NEFF Australia
  • Marketing

Keep Left Wins Content Marketing Account For NEFF Australia

PR and content marketing agency Keep Left has won a competitive content marketing pitch for German home appliances company NEFF. As one of few appliance brands to focus exclusively on the home cooking experience, NEFF was looking to sign with an agency that could take its content marketing program to the next level. The key […]

PPR Appoints Allan Dib As Director Of Planning & Insights
  • Marketing

PPR Appoints Allan Dib As Director Of Planning & Insights

WPP AUNZ-owned public relations agency PPR has announced the appointment of Allan Dib as director of planning and insights to help clients better connect with the communities they are wanting to reach. After more than 20 years overseas, Dib is returning to Melbourne to work with PPR’s six teams across Australia and New Zealand to […]

Banjo Trades Pee For Pampering With Festivalgoers After NSW Health Campaign Win
  • Advertising
  • Campaigns

Banjo Trades Pee For Pampering With Festivalgoers After NSW Health Campaign Win

Ad agency Banjo has managed to lure music festival fans into taking a pee test for sexually transmitted infections (STIs) after winning the NSW government Sexual Health Festival activation campaign. Charged with convincing people to pee in a pot, Banjo developed the ‘Down to Test’ experience using the temptation of a VIP Chill Out Zone […]

Subway Gives Away 13 Million Meals To Hunger Relief Charities Via JWT Sydney
  • Campaigns
  • Marketing

Subway Gives Away 13 Million Meals To Hunger Relief Charities Via JWT Sydney

In a global, real-time data-led campaign devised and executed by J. Walter Thompson (JWT) Sydney, more than 40,000 Subway restaurants in more than 60 countries recently invited customers to join the Subway Live Feed to help fight hunger around the world. The concept, developed specifically to celebrate World Sandwich Day on Friday 3 November, saw […]

Editor Sacked Over Racist And Homophobic Tweets
  • Media

Editor Sacked Over Racist And Homophobic Tweets

The editor the UK’s influential Gay Times has been sacked by his bosses following a series of demeaning, racist and homophobic tweets from far back as five years ago. As reported on B&T last week, Josh Rivers had been in the editor’s chair for less than a month when the unsavoury tweets resurfaced forcing his bosses […]

by B&T Magazine

B&T Magazine
How The VOTE YES Campaign Unlocked Creative Freedom For Marketers & Individuals
  • Marketing
  • Opinion

How The VOTE YES Campaign Unlocked Creative Freedom For Marketers & Individuals

In this opinion piece, PHD’s new business and marketing manager, Chloe Hooper (pictured below), reflects on how brands cleverly got involved in the same-sex marriage debate. It was announced last week that 61.6 per cent of the nation voted yes to legalising same-sex marriage. In the words of PM Malcom Turnbull, “Australians have voted yes […]

Opinion

by B&T Magazine

B&T Magazine
Study: Nothing Beats TV Advertising For ROI On Ad Spends
  • Advertising

Study: Nothing Beats TV Advertising For ROI On Ad Spends

In what’s certain to be music to the ears of Australian TV bosses, a new study (albeit out of the UK) has found TV advertising generates the highest return on investment (ROI) of any media over both the short-term and the long-term. The study was commissioned by UK industry body Thinkbox and was carried out by marketing analysts at […]

by B&T Magazine

B&T Magazine
Free TV Begins Consultation Period For The Banning Of Gambling Ads During Live Sport
  • Advertising

Free TV Begins Consultation Period For The Banning Of Gambling Ads During Live Sport

Free TV Australia has announced the commencement of the consultation period on the new draft provisions of the Commercial Television Industry Code of Practice relating to gambling advertising during live sporting events. The new provisions further restrict gambling advertising during live sports following discussions with the Government. Free TV Acting CEO Pamela Longstaff said, “Free TV […]

Study: Aussie Online Shoppers Happy With Longer Delivery Times So Long As Delivery’s Free
  • Marketing

Study: Aussie Online Shoppers Happy With Longer Delivery Times So Long As Delivery’s Free

US tech firm Pitney Bowes has released its fourth annual Global Online Shopping Study which showed Australian shoppers continue to lead the world when it comes to the percentage of shoppers who buy cross-border. You can read the study in full here. However, the strong influence of shipping and delivery options is now changing the way Australians […]

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine
AnalogFolk Opens In Shanghai
  • Advertising

AnalogFolk Opens In Shanghai

AnalogFolk has opened in Shanghai and, as B&T's trusty Funk & Wagnalls atlas tell us, is somewhere near Wollongong.

Social TV – Will You Be At The Party?
  • Advertising
  • Marketing
  • Media
  • Opinion

Social TV – Will You Be At The Party?

Can't keep-up with the goings-on in the Aussie TV industry? Well, hit the couch, pull on the trakkie daks & peruse this.

Opinion

by Rochelle Burbury

Rochelle Burbury
JWT Melbourne Hooks John West’s Creative
  • Advertising

JWT Melbourne Hooks John West’s Creative

You'd only need snog a B&T staffer to know of our affection for the John West oysters in aspic & smoked mackerel ranges.

by B&T Magazine

B&T Magazine
Sydney-Based Tech Marketing Firm, Law Of The Jungle, Scoops Top International Gong
  • Marketing

Sydney-Based Tech Marketing Firm, Law Of The Jungle, Scoops Top International Gong

Sydney-based online cloud solution for marketing compliance, Law of the Jungle, has beaten the world’s best firms to win a prestigious RegTech Markets 2017 Spotlight Award. RegTech Markets, a global community for regulatory technology, inaugurated these awards to “shine a light on the world’s best and brightest RegTech companies”.  A panel of 30 industry experts […]