ThinkTV study finds TV is better than any other channel for sales

A study commissioned by ThinkTV has found TV to be three times better at driving incremental sales than any other channel.

The research was led by Professor Peter Danaher, head of the Monash University Department of Marketing and Professor of Marketing and Econometrics, GroupM and global marketing effectiveness consultancy, Gain Theory.

The study analysed the campaign performance of 60 brands with a collective annual turnover of $23 billion and an annual media spend of $450 million has found TV generates demand for businesses in both the short and long-term.

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The study utilised econometric modelling across three years of campaigns to examine how media contributes to business demand generation across a number of sectors including automotive, retail, FMCG, financial services, travel, government and utilities. Nine different media channels were analysed: total TV, radio, out-of-home, search, print, social (Facebook), cinema, social video and digital display.

Across the 60 brands in the study, for every dollar spent, the average return on investment (ROI) for total TV was $18.30. This return was far greater than any other channel with the next highest return $14.10 for social (Facebook), followed by out-of-home ($13.70), digital video ($13.20) and search ($12.40).

The study also found that in the short term (less than three months), total TV delivered ROI of $4.30 for every dollar spent demonstrating its ability to drive growth over shorter time frames.

Total TV has the strongest “synergistic effect in multichannel campaigns” according to the findings, increasing the effectiveness of social (Facebook) by 6.02%, search by 7.13% and display by 5.28%.

ThinkTV CEO Kim Portrate said: “This research proves TV – potentially under-allocated in marketer’s short-term campaigns – is the perfect partner to help make the most of the new year.”

ThinkTV is part of the Premium Content Alliance. Foxtel Media, along with Nine, Seven and Ten are all stakeholders in ThinkTV.


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