Study: FMCG, Auto & Finance Under-Invested In TV Ad Spends

New findings from a $1 million study by marketing analytics agency Ebiquity has found that companies in the FMCG, automotive and finance sectors would significantly improve their return on advertising investment by moving more of their media budgets to TV.

Ebiquity, which was commissioned by ThinkTV, was given three years’ worth of raw sales and campaign data by 21 advertisers with a collective spend of over $500 million and used econonometric modelling to discover which media had generated the best return on investment. Ebiquity has now used those findings to model how participants can optimise their returns by altering their media mix.

In these latest findings, Ebiquity’s clear advice for companies in three of the four categories studied is to increase the average percentage of their media budgets allocated to TV significantly: from 78 per cent to 90 per cent for FMCG, from 53 per cent to 75 per cent for automotive, and from 33 per cent to 60 per cent for finance. It noted search as the dominant platform for E-Commerce with TV playing a supporting role.

Ebiquity also found that if every advertiser in the four categories in the Australian market applied Ebiquity’s recommended changes, they would collectively gain $1.1 billion in sales revenue. That’s a 20 per cent improvement for those sectors without spending a single cent more on advertising.

Richard Basil-Jones, managing director of Ebiquity Asia- Pacific, said: “There have been various studies done around the world, by Ebiquity and others, on ROI by media channel, and what is clear is that TV is at the top”.

Kim Portrate, chief executive of ThinkTV, said: “The true measure of marketing success is the revenue generated from marketing investment. After we got such striking results from the ROI study, many participants asked how they could use the findings to better their return on investment. The findings here show that many companies are under-invested in today’s multi-platform TV, which is 100% viewable, brand safe, measurable and reliable.

“The study shows that small changes to the media channels used by advertisers can generate significant extra revenue dollars – in some cases it can be the difference between growing or standing still from a sales perspective. The work from Ebiquity’s latest modelling gives advertisers a clear blueprint about how to achieve greater growth without needing additional funding to drive their marketing.”

Steve Weaver, director of research and Insights for ThinkTV, said: “The econometric modelling methodology used by Ebiquity in the Payback Study is gold standard and the results are reliable. In today’s competitive, low-growth business environment I doubt there is a single advertiser out there who wouldn’t grab at the chance of a few extra percentage points of growth. The smart money is moving to TV.”

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