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Maximising Smartphone Revenue: Australian Marketers Shift to Digital Calling all OEMs! To maximise return on spending, smartphone marketers are considering how they can optimise their media investments. Google and MarketShare conducted Marketing Mix Modelling for the Smartphone OEM category in Australia * to reveal how various marketing channels impact revenue. At current spend, digital is seeing a better return on investment than traditional channels. Among the Google ad types, YouTube and Google Display have the most room to grow. This is how smartphone marketers can optimise marketing investment to maximise revenue: thinkwithgoogle.com.au Base Revenue Marketing-Driven Revenue In Australia, marketing efforts drove 4.2% of total smartphone revenue. Google 2.0 Revenue per $1 of Advertising Spend (at current average spends) Google Display generated 7.9X as much revenue per $1 spent as TV and YouTube Mastheads generated 3.9X as much revenue. Google Display YouTube Mastheads YouTube Un-Skippable Reserve YouTube TrueView YouTube Skippable Reserve Non-Google Display Google Search TV Print OOH $12.02 $6.01 $5.71 $5.45 $2.57 $1.46 $3.60 $1.53 Radio $2.96 $1.30 $1.03 Average OEM Marketing Spend Marketing-Driven Revenue Press 1 for more insights. Digital media contributed 44% of marketing-driven revenue, ** despite getting just 22.9% of the budget. Marketing Efficiency Index = % Marketing Contribution / % Marketing Spend Source: Google/MarketShare, “Media Mix Optimization,” July 2015. The modelling period spanned 2011– 2013 and included 5 OEMs with a combined revenue comprising over 80% of OEM category sales. Refers to revenue directly attributable to the paid media channels included in the model shown (Google Display Ads, Google Search Ads, YouTube Mastheads, YouTube Video Ads, YouTube TrueView Ads, Non-Google Display, TV, Print, Radio, and Out of Home). Non-Google Display is an estimate of display spend from Nielsen, based on a panel which does not include data from Facebook or Twitter. Results are directional. Optimisation does not take availability of inventory into account. * ** Current smartphone budget split Optimisation yields up to an 8% increase in marketing-driven revenue. Non-Digital 23% 77% Digital Optimised budget split Non-Digital Digital 49% 51% Google Non-Google Display TV OOH Print Radio Digital TV OOH Print Radio Non-Google Display 1.8 Print 1.5 TV 0.8 Radio 0.7 OOH 0.5 $1 ROAS

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Page 1: Maximising Smartphone Revenuethink.storage.googleapis.com/docs/maximising-smartphone-revenue... · Maximising Smartphone Revenue: Australian Marketers Shift to Digital Calling all

Maximising Smartphone Revenue:Australian Marketers Shift to Digital

Calling all OEMs! To maximise return on spending, smartphone marketers are

considering how they can optimise their media investments. Google and

MarketShare conducted Marketing Mix Modelling for the Smartphone OEM

category in Australia* to reveal how various marketing channels impact revenue.

At current spend, digital is seeing a better return on investment than traditional channels.

Among the Google ad types, YouTube and Google Display have the most room to grow.

This is how smartphone marketers can optimise marketing investment to maximise revenue:

thinkwithgoogle.com.au

Base Revenue

Marketing-Driven Revenue

In Australia, marketing efforts drove 4.2% of total smartphone revenue.

Google

2.0

Revenue per $1 of Advertising Spend (at current average spends)

Google Display generated 7.9X as much revenue per $1 spent as TV and YouTube Mastheads generated 3.9X as much revenue.

Google Display

YouTube Mastheads

YouTubeUn-Skippable

Reserve

YouTubeTrueView

YouTubeSkippableReserve

Non-Google Display

GoogleSearch

TV Print OOH

$12.02

$6.01 $5.71 $5.45

$2.57$1.46

$3.60

$1.53

Radio

$2.96

$1.30 $1.03

Average OEM Marketing Spend

Marketing-Driven Revenue

Press 1 for more insights.

Digital media contributed 44% of marketing-driven revenue,** despite getting just 22.9% of the budget.

Marketing Efficiency Index = % Marketing Contribution / % Marketing Spend

Source: Google/MarketShare, “Media Mix Optimization,” July 2015.

The modelling period spanned 2011– 2013 and included 5 OEMs with a combined revenue comprising over 80% of OEM category sales.Refers to revenue directly attributable to the paid media channels included in the model shown (Google Display Ads, Google Search Ads, YouTube Mastheads, YouTube Video Ads, YouTube TrueView Ads, Non-Google Display, TV, Print, Radio, and Out of Home).Non-Google Display is an estimate of display spend from Nielsen, based on a panel which does not include data from Facebook or Twitter.Results are directional. Optimisation does not take availability of inventory into account.

***

†‡

Current smartphone budget split

Optimisation yields up to an 8% increase in marketing-driven revenue.‡

Non-Digital

23% 77%

Digital

Optimised budget split

Non-DigitalDigital

49% 51%

Google

Non-Google Display

TV

OOH

Print

Radio

Digital

TV

OOH

Print

Radio

Non-Google Display†

1.8

Print

1.5

TV

0.8

Radio

0.7

OOH

0.5

$1 ROAS