In the ever-evolving landscape of advertising, where metrics and strategies are constantly being re-evaluated, Stewart Gurney, Director of Strategy and Effectiveness at Nine, has made a bold statement: it's time to shift our focus from ROI to effectiveness. This shift is not just a trend but a necessary evolution in how we measure and maximize the impact of our advertising efforts. Gurney's message at the 2026 Future of TV Advertising conference in Sydney was clear: growth, not efficiency, should be our new north star. And to achieve this, we must rethink our approach to TV advertising, a medium that, despite its enduring popularity, has often been overlooked in favor of digital channels.
The ROI Trap
One of the most compelling points Gurney made was the inverse relationship between ROI and profit growth. As ROI improves with reduced spending, brands often find themselves underinvesting in the channels that truly drive sales. For instance, Total TV (TTV) is the second-highest contributor to media-driven revenue, generating 22% of all media-attributed sales, which is double the contribution of platforms like YouTube. Yet, 83% of advertisers remain underinvested in TV. This underinvestment is not just a missed opportunity; it's a strategic mistake that costs brands an estimated $4 billion in potential profit.
The Growth Pillars
To break free from the ROI trap, Gurney outlined three distinct growth pillars that advertisers can leverage to reclaim lost profits:
1. Sales Growth: The Power of Scale and Saturation
TV, with its high saturation point in the Australian market, offers a unique advantage. Unlike digital channels, which can quickly reach a plateau, TV continues to deliver. This means brands can invest significantly more in TV before seeing diminishing returns. However, the challenge lies in breaking free from the efficiency mindset. As Gurney pointed out, prioritizing digital channels over TV can lead to underinvestment in the channels that actually move the needle. The 'gym bro' analogy is particularly insightful here; just as a gym bro can lift heavy furniture, TV can drive significant sales growth.
2. Brand Growth: Content, Context, and Co-Viewing
TV's strength in brand building is rooted in two powerful dynamics: the content it carries and the context of the viewing moment. Viewing on a TV screen produces 60% higher ad recall than mobiles or tablets, largely because viewers are in a more relaxed, receptive state. Co-viewing, where 40% of Australians watch free-to-air content with others, creates social resonance and memory structures, making audiences twice as likely to mimic an ad when watching with others. In an age of fake news, professionally produced content also generates 60% higher recall and significantly more trust than user-generated content (UGC).
3. Short-Term Growth: Priming the Performance Pump
While TV is often viewed as a long-term play, Gurney highlighted its critical role in driving performance. TV investment leads to a 14% improvement in search and social conversations, and 66% of TV-initiated searches are direct or organic, allowing brands to leapfrog expensive, generic search terms. AI tools like Gemini and ChatGPT are disrupting traditional search, making direct-to-site visits vital. Data from Adgile confirms that 1 in 3 media-attributable actions (web visits or app interactions) are driven by TV, proving its immediate impact on the digital ecosystem.
The Broader Implications
Gurney's insights raise a deeper question: if growth matters to your business, why are we still fixated on efficiency metrics like ROI? The answer lies in the fact that effectiveness, not efficiency, is what truly drives business growth. By shifting our focus to effectiveness, we can unlock the full potential of TV advertising, a medium that continues to deliver results, even in an era of digital disruption. This shift is not just about rethinking our strategies; it's about embracing a new mindset that prioritizes growth over cost-cutting.
Conclusion
In the end, Gurney's message is a call to action for advertisers to rethink their approach to TV advertising. By focusing on effectiveness, we can reclaim lost profits, drive sales growth, and build stronger brands. The growth pillars outlined by Gurney provide a clear path forward, but the real challenge lies in breaking free from the efficiency mindset that has held us back for too long. It's time to embrace the power of TV and unlock its full potential as a growth engine for our businesses.
