A review of research from Australia and around the world confirms that TV advertising is as effective and as relevant today as ever. What’s more, TV continues to deliver the greatest profit to advertisers.

1. TV EFFECTIVENESSA review of local and international research exploring the power of TV advertising

2. Television has always been the best way for advertisers to launch new products, to grow brands
and to drive sales. But with new technologies and more media options for consumers than ever
before, is television advertising still effective?
A review of research studies from Australia and around the world confirms that television
advertising is as effective and as relevant today as ever. What’s more, TV continues to deliver
the greatest profit to advertisers.
Introduction

3. Contents
Why TV Works
Preferred source of entertainment Page 5
Time spent watching screens Page 6
Reach and scale Page 7
Advertising receptivity Page 9
Advertising attention by screen Page 10
Ad engagement Page 11
Trustworthiness Page 12
Emotional response to advertising Page 13
Talkability Page 15
Impact of second screens Page 17
Advertising’s influence Page 19
Response to advertising Page 20
Results & ROI
Return on investment Page 22
Sales uplift per exposure Page 23
Sales by category Page 24
Short to medium term response Page 25
Impact of emotional ads Page 26
Cost efficiency Page 27
Impact on business results Page 29
Direct impact on other channels Page 30
Impact on search and online Page 31
Amplification effects Page 33
Impact long term Page 34
TV effectiveness over time Page 36
This document is divided into two sections: 1) Why TV Works explores just some of the reasons
why Television is so effective and 2) Results & ROI demonstrates the business outcomes that
can be achieved with Television.

4. WHY TV WORKS

5. WHYTVWORKS
60%
15% 17%
25%
8%
24%
60%
Watching
television
Listening to radio Reading
newspaper
Going to the
movies
Reading
magazines
Playing video
games
Use internet for
social/email
People love their TV
Source: Deloitte Media Consumer Survey 2015, n=2000+ Australians, preferred sources of entertainment, reading books/listening to music and attending live
performances not charted.
Preferred Source of Entertainment
Television advertising works because people love watching TV. A Deloitte survey of more than
2,000 Australians shows that watching television is one of Australians’ preferred sources of
entertainment.
RESULTS&ROI
Page 5

6. WHYTVWORKS
People spend more time watching TV
Australians love their TV and so they spend a lot of time watching it. While people consume TV
and other content across a range of screens, people spend significantly more time – 87.8% of
their total screen-time - watching Broadcast TV on a TV.
7.5%
Laptop/PC 2.0%
Tablet2.7%
Smartphone
87.8%watching Broadcast TV
on a TV set
Time Spent Watching Broadcast TV on TV and
Time Spent Watching Content – Including TV, Movies, YouTube Videos etc – On Other Devices
Source: Australian Multi-Screen Report Q3 2015 (published Dec 2015).
RESULTS&ROI
Australians spend more
time watching Broadcast
TV on a TV than they do
watching all other content
on all other screens
combined.
Page 6

7. WHYTVWORKS
In an increasingly fragmenting environment, reach has never been more important.
TV delivers advertisers unbeatable scale
Source: 15 million reach figure is sourced OzTAM and RegionalTAM data, 5 cap cities, 5 aggregated markets, average daily reach, total commercial TV, metro and regional
figures are combined to form a national estimate, 1 January to 31 December 2015, consolidated data; quote sourced Deloitte Media Consumer Survey 2015.
RESULTS&ROI
“The audience scale and reach of TV
advertising continues to be of value to
advertisers in spite of – and perhaps
because of – the increasingly
fragmented media landscape.”
Deloitte
15 MILLION
PEOPLE ACROSS AUSTRALIA
WATCH COMMERCIAL TV
ON THEIR TV SETS EVERY DAY
Page 7

8. WHYTVWORKS
Advertisers know that in order to grow their brands they need to get their message to as many
people as possible. No other medium compares to the scale and reach of commercial TV. TV
consistently reaches more people across all key buying demographics.
TV reaches more consumers
Source: OzTAM and RegionalTAM, 5 cap cities, 5 aggregated regional markets, 1 January – 31 December 2015, 2am – 2am, average weekly cumulative reach, total commercial
TV, regional excludes spill, consolidated data.
Cumulative Weekly Reach – Commercial TV
Ppl 18-24
Metro: 70.6%
Regional: 64.9%
Ppl 25-39
Metro: 82.0%
Regional: 82.9%
Ppl 40-54
Metro: 90.7%
Regional: 90.4%
Ppl 55+
Metro: 93.1%
Regional: 91.3%
GBs w/ Kids
Metro: 90.3%
Regional: 88.1%
Total People
Metro 85.2%
Regional: 84.3%
RESULTS&ROI
Page 8

9. WHYTVWORKS
BBM Analytics conducted a survey amongst Canadian consumers to determine the appeal of
advertising on different platforms. The research revealed that people not only pay the most
attention to TV ads, but they are also far more receptive to the ads they see on television.
People are more receptive to ads on TV
Source: BBM Analytics Canada, Ad Receptivity Survey 2014 , Adults 18+.
40.3%
14.1%
11.4%
3.7%
11.9%
8.2%
Television Radio Newspaper Magazine Internet Out of home
Receptivity To Advertising By Medium
RESULTS&ROI
Page 9

10. 62%
37%
33% 31%
Television Laptop Tablet Mobile
WHYTVWORKS
So how do ads on TV compare to ads in other screen environments? Millward Brown’s Ad
Reaction study found that Australian multi-screen users pay more attention to the ads they see
on a TV than on any other screen.
Ads on a TV command more attention
Source: Millward Brown AdReaction 2014; ‘How attentive are people to ads on each screen’, Australian multi-screen users.
Advertising Attention By Screen
RESULTS&ROI
Page 10
Viewability counts! Ads on TV
are 100% viewable, for 100% of
the ad. Online video impressions
are mostly defined as 50% of
pixels viewable for just one or
two seconds.

11. WHYTVWORKS
Recent biometric research shows that TV commercials are 4 times more engaging than video ads on
Facebook, leading to Higher Brand Recall and Purchase Intent. The Innerscope study found that
consumers have higher visual attention with final branding moments and brand logos with TV
advertising, than those viewed online as pre-roll on any device.
TV ads 4x more engaging than Facebook
Source: Innerscope Research 2015, biometric monitoring, eye tracking and traditional survey methods, n=390 consumers aged 18 to 34 years.
Most Likely To Try Or Buy Target Brands After Seeing Advertisement
9%
25%
Facebook
Television
47% of consumers say
they immediately skip
or ignore a video ad on
Facebook.
RESULTS&ROI
Page 11

12. Most Trustworthy Advertising Medium
Consumers consistently rate TV as the most trusted form of advertising. An Ipsos survey of UK
consumers found that ads on TV are by far the the most trusted form of advertising. And
Nielsen’s recent Trust in Advertising global survey shows TV ads are the most trusted at 63%.
Source: Ipsos Media CT/Thinkbox TV Nation 2014. Base: all adults 15+. Question: ‘In which, if any, of the following places are you most likely to find advertising that you trust?,
Nielsen Global Trust in Advertising September 2015.
WHYTVWORKSRESULTS&ROI
People trust the TV environment
Page 12
Ipsos found that trust in TV
was not only much higher
than any other medium,
TV’s trustworthiness is
actually increasing –
growing 5 percentage
points since 2012.

13. WHYTVWORKS
TV ads evoke emotion
Source: Ipsos MediaCT/Thinkbox TV Nation 2014. Base: all adults 15+.
Advertising’s Ability to Evoke Emotion By Medium
TV commercials are by far the most likely to make people feel emotion which research shows
is an incredibly effective response to advertising. 77% of those surveyed in an Ipsos study said
that TV ads are most likely to make them laugh, cry or feel emotional.
RESULTS&ROI
77%
8% 8% 6% 6%
TV Radio Newspapers Mags Internet
TV’s emotive power of
moving images and sound
means consumers are more
likely to engage with your
brand and remember you.
Page 13

14. WHYTVWORKS
Television ads play a vital role in delivering messages to consumers as they prompt strong,
immersive emotional connections. According to a study published in the Journal of
Advertising Research, brand advertising is far more emotionally engaging when experienced
on TV either alone or in combination with online viewing.
TV ads drive emotional brand connections
Source: Warc “TV ads deliver emotional connections” 24 January 2014
RESULTS&ROI
Page 14
The power of storytelling
through TV advertising helps
create that all-important
emotional connection that
drives engagement and brand
loyalty.

15. 58%
10% 9% 8% 8%
5% 4% 3%
28%
11%
4%
8%
5%
3% 3% 2%
TV Social Newspapers Websites Online search Radio Magazines Out of home
Face to face / on the phone
Online
Source: Ipsos Media CT/Thinkbox TV Nation 2014. Base: all adults 15+. Question: On which medium are you likely to find advertising that you talk about either face to face or over
the phone / online?
Advertising Talkability By Medium
If you want people to talk about your brand, TV ads are your best bet. Ads on television are
most likely to drive conversation - either face-to-face, via phone, or through email/social media
- proving the powerful water cooler effect of television exists both offline and online.
WHYTVWORKSRESULTS&ROI
TV ads are the most talked about
Page 15

16. WHYTVWORKS
When Australian social media users were asked how often they make comments about TV on
social media, an overwhelming 29 percent said they did once or more times a week, with a
further 8 percent commenting every day or almost every day. This daily social media
engagement with TV provides a huge opportunity for advertisers to truly connect with their
audiences and turn TV viewers into social ambassadors for their brands.
TV is the social media
Source: Spotlight on Social TV, November 2014, conducted by Network Ten and Research Now, online survey of 1,067 social media users, cap cities.
RESULTS&ROI
Almost 1 in 3 social
media users talk about
Television on at least a
weekly basis.
Page 16

17. WHYTVWORKS
New technologies are providing a forum for discussion about what viewers are watching on TV
and allows them to search and purchase brands all without leaving the couch. Deloitte found
that 25% of Australian multi-taskers actively engage in activities that directly relate to what they
are watching and 1 in 5 browse for products and services online while watching television.
TV drives engagement with brands
Source: Deloitte Media Consumer Survey 2015; Neuro-Insight Study “Re-socialisation of TV” for Seven Network and MEC, engagement in program.
RESULTS&ROI
Page 17
A Neuro-Insight study also found
that interacting with social media
while watching TV drives a 9%
increase in engagement and a 26%
cumulative increase in engagement.

18. WHYTVWORKS
A recent study “Television Advertising and Online Shopping” concludes that the second screen
puts a virtual store in every consumer's pocket. The study revealed that multi-screen users visit,
browse and buy advertised products within moments of seeing a commercial on TV.
TV is the new shopfront
Source: Television Advertising and Online Shopping 2015, Science Daily.
RESULTS&ROI
Page 18

19. WHYTVWORKS
63%
47% 46%
42% 41%
38% 38% 37%
31%
27%
Television Cinema Prod P'ment News Mags Brand EDMs Radio Outdoor Social Games
Australians nominate TV advertising as the medium that works better than any other at influencing
their behaviour and purchasing decisions. A 2015 Deloitte study found that 63% of Australians
nominate TV advertising as the biggest influence on their decision to purchase goods and services.
TV advertising has the greatest influence
Source: Deloitte Media Consumer Survey 2015; n=2000+ Australians, Q: “To what degree do the following influence your buying decisions?” chart includes top ten
advertising influences.
Most Important Influencers On Buying Decisions
RESULTS&ROI
Page 19

20. WHYTVWORKS
TV advertising is the best medium for driving an action. A recent Nielsen survey shows more than
six in ten online Australians take action (do something) as a result of an ad seen on TV, making TV
the most powerful advertising platform to drive a consumer response.
.
TV is the ultimate response medium
Source: Nielsen Global Trust In Advertising Survey Q1, 2015; “To what extent do you take action on the following forms of advertising?”, paid media.
RESULTS&ROI
63
58
52
48
45
41
41
40
34
31
30
30
Ads on TV
Ads in newspapers
Ads in magazines
Ads on radio
TV product placements
Ads before movies
Billboard/outdoor ads
Ads served in search
Ads on social networks
Online video ads
Ads on mobile devices
Online banner ads
Response to Advertising Platforms – Sometimes or Always Take Action
Page 20

21. RESULTS & ROI

22. £1.79
£1.52 £1.48
£0.91
£0.37
Television Radio Press Online Display Out of Home
In one of the most robust studies of its kind, Ebiquity in the UK found that TV advertising creates
the most profit for businesses. Their analysis showed that TV advertising delivers an average profit
return of 1.79 pounds for every pound invested.
TV ads generate the most profit
Source: Payback 4: Pathways to Profit, Ebiquity UK database 2011-2014 (analysis based on 10 advertising categories, 100 advertisers).
Return on Investment – Ebiquity Database
WHYTVWORKSRESULTS&ROI
Page 22

23. WHYTVWORKS
Television advertising consistently outperforms other media when it comes to generating sales.
Ebiquity in the UK found that TV is twice as effective as the next best performing medium at
creating a sales uplift per equivalent exposure.
TV is the leading sales driver
Source: Payback 4: Pathways to Profit, Ebiquity UK database 2011-2014 (analysis based on 10 advertising categories, 100 advertisers).
100%
52%
27%
13% 11%
Television Press Radio Online Display Out of Home
The Ebiquity study found
that if one exposure on
TV delivers 100 product
sales, then an equivalent
exposure on press would
deliver 52 sales.
Media Effectiveness Index – (TV Index = 100)
RESULTS&ROI
Page 23

24. 0
1
2
3
4
Automotive Finance FMCG Retail Telcos
TV Online Paid Search Print Radio
WHYTVWORKS
TV ads drive more sales across categories
Source: Marketshare ‘Evaluating TV Effectiveness in a Changed Media Landscape’ 2010-2014, Average Lift Factor = 1.
Relative Lift Factor
Across a broad range of industries, TV advertising is consistently more effective at impacting
KPIs - such as sales and new accounts - than paid search, print, radio or online (display and
social). A MarketShare study in the U.S. found that at similar spend levels, television’s lift is
consistently 7 times paid search and 3 times online.
RESULTS&ROI
Page 24

25. WHYTVWORKS
TV accounts for a third of all media sales
Base
61%
Short to
medium-
term media
39%
TV
33%
Generic
PPC Search
22%
Online display
12%
Affiliates 10%
Print 8%
DM & door drop
8%
Radio &
outdoor 4%
Other online 3%
A recent Group M study showed that on average media drives 39% of sales in the short to
medium-term. The remaining 61% comprises ‘base’ sales which are impacted by historical media
activity, but also reflect seasonality, distribution or promotional activity. TV advertising drove a
third of these media-driven sales - more than any other channel.
Short to Medium Term Response
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 15 brands. Other online media (3%) includes VOD, email, social. Short to medium term sales
(ie. within 3 months of a campaign ending).
RESULTS&ROI
Page 25

26. WHYTVWORKS
TV’s ability to drive an emotional response is undisputed. But how does this translate to business
outcomes? A recent neuroscience study conducted by Nielsen found that advertisements with the
best emotional response generated a 23 percent uplift in sales volume.
Emotional ads drive a 23% lift in sales
Source: Nielsen Consumer Neuroscience Internal Study 2015, FMCG brands.
Lift in Sales Volume vs All Ads For The Brand
-16%
-2%
23%
-30%
-20%
-10%
0%
10%
20%
30%
Below
Average Ads
Average Ads Above
Average Ads
RESULTS&ROI
Page 26

27. WHYTVWORKS
TV drives the most cost-efficient response
Marginal Cost Per Response By Media
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 7 brands.
Due to its scale and reach, television advertising continues to generate a cost-efficient level of
response than other media.
Marginalcostperresponse
Spend
TV Print Radio
Outdoor Online display Generic PPC Search
RESULTS&ROI
Page 27

28. WHYTVWORKS
2.7 times more can be invested in TV
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 7 brands.
0
50
100
150
200
250
TV Outdoor Generic PPC
Search
Print Online
display
Affiliates Radio
Comparativespendindex
Indexed Media Spend At Saturation
Efficiencies can be best maximised best through television advertising. Group M’s analysis showed
2.7 times more can be spent on television than online channels before a significant decrease in
inefficiency takes place.
RESULTS&ROI
Page 28

29. The Video Advertising Bureau in the US recently conducted a study to explore the correlation
between television advertising spend and business results. The research found that companies
that increased their TV spend over a 4-year period saw substantial growth in revenues, stock
price, and earnings per share. Meanwhile, the companies that decreased their TV spend,
underperformed against the averages of the 100 companies examined in the study.
WHYTVWORKS
Increasing TV ad spend drives revenue
Source: VAB ‘A Question of Impact’ 2015., historical TV spend of 100 large, well-known parent companies across major categories (auto, CPG, entertainment, financial,
pharmaceuticals, restaurants, retail, travel, telcos).
Key Findings
• There is clearly a correlation between TV ad spend and business performance.
• Financial results are strongest for companies with consistent yearly increases in TV ad spend.
• Almost all companies that increased their TV ad spend saw substantial growth in revenues
(+26%), stock price, and earnings per share (+38%) relative to the market.
• Companies with consistent, multi-year increases in TV spend saw the greatest spikes in revenues
and stock measures.
• Companies that decreased their TV ad spend vastly underperformed the averages of all
companies studied.
Page 29
RESULTS&ROI

30. WHYTVWORKS
TV drives response through other channels
45%
29%
25%
TV's Contribution to
Bricks and Mortar
TV's Contribution to
Web Traffic
TV's Contribution to
Telephone
Television’s Contribution To Media-Driven Response
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 8 brands. Media-driven sales.
TV is proven to drive a response through several channels directly. Group M analysis shows it
generates nearly a quarter (25%) of all telephone sales, 45% of all sales via bricks & mortar and
29% of sales driven through direct-to-site web traffic (including natural search).
RESULTS&ROI
Page 30

31. WHYTVWORKS
TV has huge impact on search and online
33%
33%
26%
20%
TV's Contribution to
Paid Search
TV's Contribution to
Facebook
TV's Contribution to
Online Display
TV's Contribution to
Affilitates
Television’s Contribution To Media-Driven Response
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 8 brands. Media-driven sales. Facebook metric is likes/comments.
GroupM also discovered that TV advertising drives an indirect response through online channels.
Their analysis showed TV generates 33% of sales via paid-for online search, 33% of sales via
facebook, 26% of sales via online display and a fifth of sales via affiliate marketing.
RESULTS&ROI
This highlights the need for
marketers to invest in
sophisticated attribution
modelling tools to be able
to assess the true impact of
each marketing channel.
Page 31

32. WHYTVWORKS
TV is a proven driver of web traffic
A recent U.S. study analysed 125 ‘call-to-action’ brands across a range of advertiser
categories - big and small budgets, national, regional and local - with more than 100,000
unique visitors per month. Analysis revealed that 82% of these brands showed a correlation
between television advertising and website traffic. Further, the study found that call-to-
action advertisers saw website traffic rise and fall with their TV ad spending.
Source: VAB Ignition Point Study 2015, unique visitors as measured by ComScore.
RESULTS&ROI
Page 32

33. WHYTVWORKS
TV amplifies the effects of other media
TV advertising consistently makes other elements of advertising campaigns work harder. The
synergy between TV and online is particularly strong. Campaigns that use TV and online
together are twice as efficient as those that incorporate brand advertising with other kinds of
activation channels.
Source: Thinkbox; Twitter and Thinkbox Research Brain Juicer 2014; Nine Entertainment Co. Client Sales Effect Study, during the promotional period.
RESULTS&ROI
Page 33
In the UK, Sainsbury used TV and Twitter to great
effect. Their integrated campaign approach led to
positive emotional brand response, increased purchase
intent and drove an uplift in key brand attributes. The
likelihood of choosing the brand the next time
significantly increased for those exposed to TV +
Twitter activity.
+ 4%
Twitter
Only
+ 21%
TV &
Twitter
+8%
TV
Only
An Australian study measured the sales uplift of
viewers who were exposed to a network-driven TV +
online promotional campaign. It found that the
shoppers who were exposed to the cross-platform
communications shopped more frequently and
bought more of the promoted product. They also
spent 24% more on each shopping occasion.
+ 24%
Increase
in spend
Case Studies

34. WHYTVWORKS
Half of response generated in longer term
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox.
Communications work in the longer-term by driving consideration amongst those who might not
currently be in the market for your brand. By investing in brand we build our base of sales which
in turn makes our tactical communications more effective. A TV Response study found that
around half of all media-driven response comes in the long-term (within 3-24 months post-
campaign).
Want Need
RESULTS&ROI
20%
40% 41%
54%
68% 75%
80%
60% 59%
46%
32% 25%
Auto Home Imp Telcos FMCG Finance Retail
%TotalROI
Short-term ROI Long-term ROI
Page 34
The longer-term
impact tends to be
significantly larger
for products we
desire (eg cars) over
those that we need
(eg insurance).

35. WHYTVWORKS
Brand TV the most cost-efficient long term
Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 7 Brands. IPA’s 2013 Ad Effectiveness: the long of the short of it.
Brand Response TV is the most efficient driver of long-term response. This was demonstrated in the
TV Response UK study, which found that BRTV was responsible for 52% of the long-term media
impact; and BRTV was 40% more efficient at driving long-term response per pound than the next
best media platform. This backs up findings from previous studies, including the IPA’s Ad
Effectiveness Study which found that TV advertising is vital for long-term brand health.
Efficiency index at driving brand metrics (higher = better)
- 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
Online display
DRTV
Radio
Print
Outdoor
Brand Response TV
Efficiency index (uplift per spend)
RESULTS&ROI
Page 35

36. WHYTVWORKS
Research consistently demonstrates that TV is as effective as ever.
• A recent MarketShare US study which meta analysed thousands of marketing optimisations
by major advertisers found that TV advertising has maintained its effectiveness over the
last five years. Their analysis showed not only that TV advertising effectiveness has
remained steady, but that it also outperforms digital and offline channels at driving key
performance metrics such as sales and attracting new customers.
• And Ebiquity UK’s highly acclaimed Payback Study, which looked at over 4,500 ad
campaigns, found that TV continues to deliver the highest return on investment (ROI) of
any form of advertising.
TV’s effectiveness isn’t waning
Source: MarketShare “Evaluating TV Effectiveness In A Changed Media Landscape” 2015, Thinkbox Ebiquity Payback 4 Study
RESULTS&ROI
“TV has consistently demonstrated the highest ROI over a 7-
year period, during a period of unprecedented economic and
technological upheaval and change. TV is continuing to
demonstrate its value ...”.
Ebiquity UK
Page 36

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