Commissioned by ThinkTV in 2016, the Payback Australia study took three years of raw sales and campaign data generated by 21 advertisers including Unilever, Pfizer and Kimberly-Clark with a collective spend of more than $500 million.
Through the use of economic modelling, Ebiquity found:
- Media’s investment paid back for all four sectors, generating an average sales ROI of $1.30 for every dollar invested by FMCG, $5.90 for automotive, $1.80 for e-commerce and $2 for finance
- TV emerged as the most efficient media channel delivering almost twice the sales uplift relative to media spend than search and radio, and around five times more sales uplift relative to media spend than out-of-home, online video and online display media
- TV has the strongest retention rate (the prolonged or lagged effect of advertising on consumer purchase behaviour) of all media followed by out-of-home, print, online display, radio, search and online video in that order. TV’s retention rate was 68%, almost twice as high as out-of-home at 36%
- TV generated the greatest return on investment by sales in FMCG, automotive and finance but trailed other media in the e-commerce category where search proved to be a critical sales component
- Ebiquity concluded that the finance brands included in the study had over-invested in online display on average. While it made for a sizable proportion of combined media spend, it generated the lowest ROI
- Online video, however, successfully paid back in the Finance category, generating $1.10 of sales uplift for every dollar invested