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TV pays for Aussie auto advertisers

News, 19 May 2017
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SYDNEY: Television delivers a significantly higher ROI for auto advertisers in Australia than any other advertising medium according to new research.

A study commissioned by ThinkTV, the television marketing body, and conducted by marketing analytics firm Ebiquity, was based on analysis of raw sales and campaign data from four automotive advertisers which collectively spend more than A$150m annually on advertising – or around one fifth of the category total.

Their econometric modelling found that that every dollar invested in TV advertising generated a sales return of $8.90, B&T reported – far ahead of all other media, for which the average ROI was $2.37.

After TV, radio performed best, returning an ROI of $5 – and if TV produced almost twice the ROI of radio, it created nearly three times as much as search ($3.2), the third-best performing medium, and close to six times as much as social ($1.6) and online display ($1.5)

Cinema ($3.0), meanwhile performed better than print ($1.6) and out of home (OOH) ($1.4); insufficient data was available to quantify ROI for online video.

"When the marketing world is placing greater focus on business outcomes, this extensive econometric modelling for the auto category has proven how critical TV is within the media mix,” said Richard Basil-Jones, Managing Director of Ebiquity – Asia-Pacific.

"When it comes to the Australian automotive sector, TV is a critical factor in driving sales.”

Kim Portrate, Chief Executive of ThinkTV, contrasted the findings of this second wave of the Payback Australia study with the first which focused on FMCG brands.

"Marketers need to create growth in tough conditions and media continues to be a significant contributor to sales,” she noted.

"Ebiquity’s findings show this to be true in the automotive sector with media contributing 12% to sales of new cars which was even more significant than the 3% uplift identified for FMCG brands in the first phase of Payback Study released late last year.

"Media also plays a greater role than short-term price promotions in the automotive sector, contributing twice as much revenue,” Portrate added.

Data sourced from B&T, Mumbrella; additional content by WARC staff

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