‘Payback 4: pathways to profit’ (2014) is an econometric analysis by Ebiquity for Thinkbox of over 4,500 ad campaigns across 10 advertising sectors between 2008 and 2014. It compared, on a like-for-like basis, the sales and profit impact of five forms of advertising: TV (linear spot and sponsorship), radio, press, online display (excluding video on demand) and outdoor. The study is an update on Ebiquity’s previous effectiveness study for Thinkbox, Payback 3, which was published in 2011. Payback 4 found that TV advertising remains the most effective form of advertising and creates the most profit for businesses pound for pound. The study found that TV gave an average return of £1.79 for every £1 invested during 2011-14. This is up from £1.70 for every £1 invested during 2008-11. It also found that TV consistently demonstrated the highest return on investment (ROI) of any form of advertising over the last 7 years, a period of economic recession and major upheaval in media technology and consumption.

1. Payback 4:
pathways to
profit

2. Why Payback 4?
01 An update on TV effectiveness
02 Post-recession comparison
03 A view on TV sponsorship

3. What is Payback?
10 categories
100+ advertisers
Representing £2bn TV adspend
4,500 econometric models
Independent econometric study

4. TV profit ROI has increased in the last three years
ProfitROI
£1.70
£1.79
£0.00
£0.20
£0.40
£0.60
£0.80
£1.00
£1.20
£1.40
£1.60
£1.80
2008-2011 2011-2014
Source: Ebiquity database 2008-2014; TV

5. Sales uplift per TV rating point is slightly up
EffectivenessIndex*
Pre-2008Index=100 100.0% 102.5%
0%
20%
40%
60%
80%
100%
2008-2011 2011-2014
*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

6. TV is the lead effectiveness medium
100%
52%
27%
13% 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
TV Press Radio Online Display Out of Home
Twice as effective ‘per impact’ as
any other medium
Source: Ebiquity database 2011-2014
EffectivenessIndex
TVIndex=100

7. TV advertising generates the most profit
£1.79
£1.52 £1.48
£0.91
£0.37
£0.00
£0.20
£0.40
£0.60
£0.80
£1.00
£1.20
£1.40
£1.60
£1.80
£2.00
TV Radio Press Online display Out of Home
ProfitROI
2011-2014
2008-2011
Source: Ebiquity database 2008-2011 & 2011-2014

8. TV delivers a significant
‘halo effect’
37% of TV’s total sales effect is
transferred to other brands within
the portfolio

9. 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)

10. Retail: strong payback across all media lines
Retail
£2.87 £2.65 £2.54
£1.85
£0.00
£0.50
£1.00
£1.50
£2.00
£2.50
£3.00
TV Press Radio Online Display
ProfitROI
2011-2014
2008-2011
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

11. Financial Services: TV leads the way
Financial Services
£2.48
£1.95
£1.31 £1.18
£0.82
£0.00
£0.50
£1.00
£1.50
£2.00
£2.50
£3.00
TV Radio Press Online
Display
OOH
ProfitROI
2011-2014
2008-2011
Current share of spend in TV c. 52%*
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

12. FMCG: is all about TV
FMCG
£0.63
£0.24 £0.20 £0.18 £0.15
£0.00
£0.10
£0.20
£0.30
£0.40
£0.50
£0.60
£0.70
TV Radio Press OOH Online
Display
ProfitROI
2011-2014
2008-2011
Current share of spend in TV c. 76%*
Optimal average spend share=100%
Source: Ebiquity database 2008-2011 & 2011-2014
*Average TV % spend relative to Print, Radio, Outdoor, Online Display. Does not include Search and DD/DM

13. 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%

14. Call-to-online action continues to increase in TV ads
0
50
100
150
200
250
300
2005 2006 2007 2008 2009 2010 2011 2012 2013
No.brandswithonlinecall-to-actioninTVad
Source: Ebiquity Portfolio, 2005-2014 from all TV ads tracked across 1100 brands

15. TV sponsorship works as
a medium in its own right

16. TV sponsorship profit ROI is second to TV spot
…a word from our sponsor
Source: Ebiquity Database 2008-2014. Base: Retail & FMCG categories only
ProfitROI
£1.51
£0.87
£0.70 £0.65
£0.50
£0.00
£0.20
£0.40
£0.60
£0.80
£1.00
£1.20
£1.40
£1.60
TV Spot TV Spon Press Radio OOH
Based on limited sample of Retail and FMCG brands only

17. 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