Payback finds best FMCG returns, untapped advertising mediums?

TV has been found to be one of, if not the, best medium for brands to invest in over the years, with many well-known brands making their investments onto television consistently that spans decades. Yet it also brings the question if is it TV that is the best medium to go through, or simply other mediums are not tapped enough?

From Payback Australia’s research, fast-moving consumer goods (FMCG) ads gain the most return on investments from TV advertising with a return of $1.74 compared to other media mediums.

In addition to it being the one with the most return, it was the only medium in the study that generated a positive short term ROI according to the participating brands in the research, which included big names such as Unilever, Pfizer, Lindt, Kimberly-Clark, Goodman Fielder, Sanitarium and McCain.

Despite the best radio advertising rates already available across the country, radio advertising has not reached its full potential in comparison to its other fellow medium, with only 17% brand retainability according to Payback’s findings. Tying up with the leading radio advertising agency that offers the best radio advertising rates should be considered by companies to maximise the ROI benefits from this medium. Remember, the radio advertising costs are usually lower than TV advertising costs.

The involved brands in the study spent around $200 million on radio advertising costs and other promotional costs per medium, with three years of raw sales and campaign data to reach this finding. For every dollar invested on the other mediums, print returned 79 cents, followed by digital videos that returned 72 cents, then radio advertising agency campaigns that returned 71 cents.

Radio advertising costs can change depending on the air time of an ad, it is up to brands to fully make use of the airtime given along with the quality of these radio programs. Though the creation and placement of radio advertisements does not necessarily fall on the radio companies.

Compared to other mediums, radio has not been as well researched on how to improve on with most citing it as a medium of the older times. Yet, perhaps with the increasing number of media practitioners in the radio advertising agency industry could over time generate more research and means for radio to prosper even with technological advances.

Radio as of this age has opened its ears to live reads, sponsorships, jingles, testimonials, and even dramas, where some of the most iconic brand slogans were first started up in radio campaigns such as MacDonald’s well known “Ba da ba ba ba, I’m Lovin It!” that continues to be prevalent in their campaigns even now.

Brand campaigns may not have long-term success on radio alone but it is one of the mediums well-suited to spread word and start up, especially with getting the best radio advertising rates as a big edge for small companies that have low budget to promote their brands.

The author of this article has been working in a company that offers the best radio advertising rates to their clients. Visit for more details.

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