Nick Pugh, Ebiquity’s Head of Marketing Effectiveness, looks forward to a pioneering study of media ROI in Australia.

When the world’s largest advertiser, P&G, announced this summer that it was looking to reduce investment in targeted Facebook advertising while at the same time increasing the proportion of its budget spent on TV,[1] the global advertising community took notice. Unable to generate a reliable or predictable sales boost by targeting specific consumer groups on Facebook, P&G’s Chief Brand Officer Marc Pritchard acknowledged that the company had “gone too narrow”. It needed to balance its media plans for its brands with more reliable, proven channels including linear TV.

To quantify media ROI for Australian advertisers, ThinkTV, the research and marketing organization backed by Australia’s free-to-air and subscription television broadcasters, has commissioned Ebiquity to run a pioneering econometric study. With more pressure than ever before on marketing budgets and the C-suite looking to marketers to justify spend, the research aims to understand the contribution that five different media channels make to sales and how they compare in terms of ROI. Media under the spotlight in the Payback Australia study include TV, radio, press, online, and outdoor. Industry body ThinkTV is investing A$1m in this first-of-its-kind study.

The analysis will integrate complete campaign activity and sales data from 20 leading Australian advertisers for each of the last three years. Companies contributing data to the study will include Unilever, Kimberly-Clark, Goodman Fielder, Sanitarium, and Lindt.

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ThinkTV is modeled on Thinkbox, the marketing body for commercial TV in the UK which aims to help advertisers get the most out of the medium. Ebiquity has a long relationship with Thinkbox and we have conducted several waves of research for the organization on the value and effectiveness of TV over the past five years – follow these links for the 2011 and 2014 results. Our studies for Thinkbox have routinely shown that TV delivers the best ROI of all media. The most recent Thinkbox study found that TV advertising was twice as effective at creating sales uplift than the next best performing medium, and we are just starting the latest round of research for Thinkbox.

The Payback Australia study is expected to publish its results in early 2017, and we’ll cover the findings – giving Australia’s first set of robust industry benchmarks across different categories – in a future issue of Response. The intention is to provide forward-facing analysis to enable Australian advertisers to use the research findings in marketing and media planning.

Register for the November ReTHINK TV Marketing Forum with Payback Australia findings here.

Which do you think will be the best-performing medium in the ThinkTV research?

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