Payback 3: ad success in tough times

New Thinkbox research into Advertising Effectiveness

2007

Marketing in the Era of Accountabilitymeta-analysis of 26 years of IPA entries2007

2008Payback 2 – Brand equity analysis, conjoint analysis in 10 markets

Payback 1 – 706 brands in 7 markets, 10 years of data

2008 Advertising in a Recession – the link between brand health and media spend

2010Creative Effectiveness – IPA datamine and Gunn report

Thinkbox and advertising effectiveness since 2007…

The new news about TV payback…

To prove the effectiveness of TV in testing financial times

To include greater detail and new data like online andcategory level

Actionable results, common themes and norms

Why use Ebiquity

Experience

Large data set

Independence

Real observations

1. TV is the lead effectiveness medium

This sales effectiveness has remained consistent pre and post recession

TV Radio Press Online display

Outdoor0%

20%

40%

60%

80%

100%

120%

100%

19%

37%

15%9%

Source: Ebiquity database

TV is c. 2.5 times more effective per impact than next best medium

Eff

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Ind

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2. TV has strongest ‘halo’ effect across the portfolio

TV drives sales of non advertisers productsThe average TV ‘halo’ effect is 38% of total

FMCG Retail Finance0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

35% 41% 40%

Direct Halo

Source: Ebiquity database

‘Halo’ as a percentage

3. TV ROI is 22% higher now than 5 years ago

2006 2011

Invest £1 million £1 million

Net Profit £1.49 million £1.81 million +22%

Net Net Profit £0.49 million £0.81million +65%

Source: Ebiquity database

4. TV delivers the best return for your money

Averaged across the last 3 years

TV Radio Press Online display

Outdoor£0.00

£0.50

£1.00

£1.50

£2.00

£1.70

£1.48 £1.40

£1.06

£0.45

Source: Ebiquity database

Ave

rag

e R

OI

5. Categories behave differently

FMCG Finance Retail0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

68%

44% 43%

72%

48% 47%

100%

60%

50% NielsenEbiquityOptimum

In most categories TV is critical to campaign ROI

Source: Nielsen AdDynamix (Oct 10 – Sep 11) Ebiquity Database

Average TV % spend relative to Print, Radio, Outdoor, Online Display. Does not include Search and DD/DM

6. TV is the beating heart of a campaign effectiveness medium

TV helps drive greater effectiveness Through-The Line

REACTIVE

From brand building…………......to ‘call to action’

ACTIVEINTERACTIVE

TV is a multiplier on other ‘awareness-building’ channels

TV: Radio effectiveness multiplier

the strongest …can be > 100%

Multipliers to other media …up to 10%

TV drives branded search …by c. 35% per 100

TVRs

TV is driving increased generic search click-through conversion

TV also drives conversion via

aggregators/price comparison sites

…by up to 6%

TV increases promotion effectiveness

…by up to 20%

Summary

TV is the lead effectiveness medium

TV ROIs hit new high

TV has the strongest ‘halo’ effect across the portfolio

TV delivers the best return for your money

TV is critical to the total campaign ROI for the majority

TV delivers the best return for your money

TV helps drives greater effectiveness Through-The-Line