Download pptx - Payback 4: Pathways to Profit' by Ebiquity for Thinkbox - an advertising effectiveness study

Payback 4: pathways to profit

Why Payback 4?

01 An update on TV effectiveness

02 Post-recession comparison

03 A view on TV sponsorship

What is Payback?

10 categories

100+ advertisers

Representing £2bn TV adspend

4,500 econometric models

Independent econometric study

TV profit ROI has increased in the last three years

Pro

fit R

OI

2008-2011 2011-2014£0.00

£0.20

£0.40

£0.60

£0.80

£1.00

£1.20

£1.40

£1.60

£1.80 £1.70£1.79

Source: Ebiquity database 2008-2014; TV

Sales uplift per TV rating point is slightly up

Effe

ctiv

ene

ss I

ndex

*P

re-2

008

Inde

x =

10

0

2008-2011 2011-20140%

20%

40%

60%

80%

100%100.0% 102.5%

*Effectiveness Index = ‘normalised’ sales uplift per 100 TVRs. Average sales uplift per 100 TVRs 2008-11 normalised to 100%

Source: Ebiquity database 2008-2014; TV

TV is the lead effectiveness medium

TV Press Radio Online Display Out of Home0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%100%

52%

27%

13% 11%

Twice as effective ‘per impact’ as any other medium

Source: Ebiquity database 2011-2014

Effe

ctiv

ene

ss I

ndex

TV

Ind

ex =

100

TV advertising generates the most profit

TV Radio Press Online display Out of Home£0.00

£0.20

£0.40

£0.60

£0.80

£1.00

£1.20

£1.40

£1.60

£1.80

£2.00

£1.79 £1.52 £1.48

£0.91

£0.37

2011-2014

2008-2011

Pro

fit R

OI

Source: Ebiquity database 2008-2011 & 2011-2014

TV delivers a significant ‘halo effect’

37% of TV’s total sales effect is transferred to other brands within the portfolio

TV profit ROI by sector

Retail Financial services FMCG

£2.87+11%(versus pre-2011)

£2.48+3%(versus pre-2011)

£0.63+5%(versus pre-2011)

Retail: strong payback across all media lines

Retail

TV Press Radio Online Display

£0.00

£0.50

£1.00

£1.50

£2.00

£2.50

£3.00

£2.87 £2.65 £2.54

£1.85

2011-20142008-2011

Pro

fit R

OI

Current share of spend in TV c. 49%* Optimal average spend share=60%

Source: Ebiquity database 2008-2011 & 2011-2014 *Average TV % spend relative to Print, Radio, Outdoor, Online Display. Does not include Search and DD/DM

Financial Services: TV leads the way

Financial Services

TV Radio Press Online Display

OOH£0.00

£0.50

£1.00

£1.50

£2.00

£2.50

£3.00

£2.48£1.95

£1.31 £1.18£0.82

2011-2014

2008-2011

Pro

fit R

OI



FMCG: is all about TV

FMCG

TV Radio Press OOH Online Display

£0.00

£0.10

£0.20

£0.30

£0.40

£0.50

£0.60

£0.70

£0.63

£0.24 £0.20 £0.18 £0.15

2011-20142008-2011

Pro

fit R

OI



TV advertising boosts other media

Reactive Interactive Active

TV is a multiplier of other awareness building channels

TV to radio is strongest and can be >100%

TV to press and OOH can be up to 50%

Branded search is 33% more responsive to TV in 2011-2014

TV to generic search on average +5% shift in conversion per 100 TVRs

TV helps drive significantly greater promotional effectiveness

Observed multiplier effects up to 100%

Call-to-online action continues to increase in TV ads

2005 2006 2007 2008 2009 2010 2011 2012 20130

50

100

150

200

250

300

No.

bra

nds

with

onl

ine

call-

to-a

ctio

n in

TV

ad

Source: Ebiquity Portfolio, 2005-2014 from all TV ads tracked across 1100 brands

TV sponsorship works as a medium in its own right

TV sponsorship profit ROI is second to TV spot

…a word from our sponsor

Source: Ebiquity Database 2008-2014. Base: Retail & FMCG categories only

Pro

fit R

OI

TV Spot TV Spon Press Radio OOH£0.00

£0.20

£0.40

£0.60

£0.80

£1.00

£1.20

£1.40

£1.60

£1.51

£0.87£0.70 £0.65

£0.50

Based on limited sample of Retail and FMCG brands only

Payback 4: the key findings

TV remains the most effective form of advertising, generating the most profit pound for pound

TV delivers a significant ‘halo effect’

Optimum TV spend is 60% and above for major categories within the study

TV advertising boosts other media

TV sponsorship works as a medium in its own right