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.
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%
Non-Google Display
TV
OOH
Radio
Digital
TV
OOH
Radio
Non-Google Display†
1.8
1.5
TV
0.8
Radio
0.7
OOH
0.5
$1 ROAS