Ebiquity To Reveal The ROI Aussie Advertisers Get On Their Media Investments

Ebiquity To Reveal The ROI Aussie Advertisers Get On Their Media Investments

A $1 million study by Ebiquity will reveal for the first time the average return that Aussie advertisers are getting on their media investments when the findings are revealed at the ReThinkTV marketing forum in Sydney on Thursday 14 September 2017.

Rochelle Burbury
Posted by Rochelle Burbury

The all-of-industry wave of Ebiquity’s Payback Australia study will bring together the company’s existing findings from the fast moving consumer goods (FMCG) and automotive sectors with new findings from the finance and e-commerce sectors. Detailed findings from each sector will be released separately at a later date.

Advertisers that will participate in the latest study include eHarmony, Hotels Combined, HCF and a large Australian bank.

Ebiquity has been given access to three years of raw sales and campaign data by 21 major advertisers across the four sectors – these brands collectively spend in excess of $500 million on advertising per annum. Ebiquity has then used econometric modelling* to calculate the average return on investment that each media has generated for those brands over the three-year period.

Richard Basil-Jones, managing director of Ebiquity for the Asia-Pacific region, said: “We are really excited to be releasing the all-of-industry findings at ReThinkTV on September 14.

“These results will provide unprecedented quantitative insights into the effectiveness of Australian advertisers’ $15 billion-plus annual media spend.”

The landmark study uses econometric modelling to measure the sales impact and return on investment of several media channels, including TV, radio, press, online (including social, search, display and online video) and outdoor.

The first wave of Payback, which took raw data from advertisers including Unilever, Pfizer, Kimberly-Clark, Lindt, Goodman Fielder, Sanitarium and McCain, showed that TV creates by far the best return on investment for FMCG brands in Australia, easily beating online video, online display, radio, press, and outdoor advertising.

FMCG category (Payback Australia)

Every $1 invested in TV advertising generated a return of $1.74, and TV was the only media in the study that generated a positive short-term revenue ROI for the nine participating brands.

The second wave, featuring four automotive brands, found that TV created almost twice the ROI as the nearest competitor, radio, and almost three times as much as the next, search, with every dollar invested in TV advertising generating a sales return of $8.90, also beating online display and out-of-home.

Auto category (Payback Australia)

Kim Portrate, CEO of ThinkTV, said: “We launched the landmark Payback Australia study last year at our inaugural ReThinkTV event, and we are delighted to have delivered on our promise to prove television’s return for advertisers across key categories.

“This all-of-industry study will see Ebiquity return to ReThinkTV on September 14 to reveal these findings. Marketers need to create growth in tough conditions and media continues to be a significant contributor to sales.

“These results will provide data-driven evidence, uncovering which media channels deliver the best ROI and drive the most brand growth. We can’t wait to see the results.”

*Econometric modelling attempts to estimate the relationship between sales and the factors that drive sales. Econometrics uses mathematical equations to isolate and quantify all of the different factors that can influence sales at any one time. For example, if an automotive 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 alleviates the risk of such errors, allowing one to accurately estimate the direct dollar impact advertising has had on sales.