TV advertising delivers highest ROI for auto participants
In November 2016 at ReThinkTV, we saw the first wave of results of the $1M Payback Study – a large scale econometric study conducted by Ebiquity. In the first wave Ebiquity modelled more than $200M in collective media spend per annum against sales outputs for 9 major FMCG brands over 3 years. The Payback Study showed that for FMCG brands, every dollar invested in TV delivered an ROI of $1.74, making TV the only media channel to actually pay back for the FMCG brands modelled.
In Wave 2 of the Payback Study Ebiquity modelled $450M in media spend against three years of sales data for four automotive brands. The findings were presented by Ebiquity Managing Director Richard Basil-Jones at the Think Tank event in Melbourne on May 18th, 2017. Amongst the participating auto brands all media channels returned a positive ROI of more than a dollar returned for every dollar invested. TV ads delivered the highest ROI, with $8.90 in sales revenue generated for every dollar invested in TV – almost double the next most effective channel, radio.
Results from the second tranche of the study also showed that media played a critical role in driving sales for the participants. The study found that 12% of sales were generated from media and of that 12%, TV alone was responsible for 81% of the sales effect.
Download a copy of the slides below and for more information about the Payback Study, please contact us here.
Keep yourself up to date with the latest insights from ThinkTV
Need to speak to ThinkTV directly? Reach us here.