Maximising Payback

FMCG, Finance and Automotive sectors
are under-invested in TV, new independent study finds

A $1 million study by leading independent marketing analytics consultancy Ebiquity found that companies in the Fast-Moving Consumer Goods (FMCG), Automotive and Finance sectors would significantly improve their return on advertising investment (ROI) 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 then used those findings to model how participants can optimise their returns by altering their media mix**.

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% to 90% for FMCG, from 53% to 75% for Automotive, and from 33% to 60% for Finance.  Ebiquity recommended E-Commerce clients reduce their average TV allocation from 55% to 20%. It noted that the three E-Commerce businesses it studied lacked a physical shop-front and relied heavily on Search as the dominant platform 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% improvement for those sectors without spending a single cent more on advertising.

Maximising Payback