Drive sales & ROI

TV’s true value lies in the return on media investment.

Of all the measures of marketing success, ROI is the one that matters in the boardroom. And according to research conducted by independent marketing consultancy Ebiquity, TV delivers a greater return on investment than any other medium.

Ebiquity’s econometric study, Payback Australia, used three years of raw sales and campaign data from 21 brands with a collective spend of $500 million across the four key advertising categories of fast moving consumer goods, automotive, finance and e-commerce. The study established TV as almost twice as efficient as the next media channel.

For example, TV returns average sales of $1.70 for every dollar invested in the FMCG category. The return is even greater for automotive which delivers $8.90 while finance sees an ROI of $5.30.

And according to Ebiquity, brands in the above categories would do well to reassess their media mix and shift existing investment to TV.

For FMCG brands, the optimal TV portion of the mix should increase from 78% to 90%, while auto brands would benefit with an increase from 53% to 75% and finance brands are advised to up spend from 33% to 60%. Doing so would result in a 20% revenue improvement without spending an extra cent.

Who doesn’t want to spend the same but sell more?

Payback Australia Report

ThinkTV’s Benchmark Series also found that when compared to social video, TV generates a greater Short Term Advertising Strength or STAS. Whether we’re talking TV advertising consumed on the TV set in your home or the mobile device in your hand, TV advertising delivers 2.9 times the sales impact of video ads on Facebook.

The same research found that TV ads have the power to drive sales for longer. Benchmark tells us that TV ads stay in our memories for 109 days while for Facebook, video ads are forgotten before the week is through.

So if you’re looking to drive sales and ROI, the choice of medium is clear.

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