Australian marketers are not investing enough in news. But rather than increase their overall ad budgets, they would be best placed to review their existing media mix and reallocate just five per cent.

That’s according to econometric modelling calling on more than three years of campaign data from 60 brands in 10 categories. The research, conducted for ThinkNewsBrands, shows that advertisers are currently investing a paltry 1.5 per cent of their budgets in ‘Total News’ – the combination of print and digital news.

In-depth analysis of the performance of campaigns and their channel allocation, however, shows marketers would achieve the most optimal results with 7.4 per cent investment.

The top channels brands should look to divest from are out-of-home, which currently sees an average of 15 per cent investment but performs best with 2.8 per cent; search, which now sits at 9.6 per cent but would be better placed at 4.8 per cent; and social, with 9.1 per cent investment which exceeds the optimal level of 2.3 per cent, as identified by modelling.

ThinkNewsBrands General Manager Vanessa Lyons said: “Right now marketers are overweighting media channels in lieu of news and they need to shift their mix because we've proven that if you want to build your brand, you need more news in the media mix.”

The findings come from a research report that explores the role of news in building brands.

In addition to the reallocation of funds, the research also demonstrates the effectiveness of Total News in attracting new customers and increasing spend from existing brand converts.

One of the key areas of exploration is Return on investment (ROI). While results vary from one category to another, drilling down on the finance sector, the research found that in the short-term, Total News delivers $5.50 for every $1.00 invested.

“In this example, Total News outperforms cinema, social media, search and out-of-home,” Lyons said. “It ranks third overall for the best channel. This more than justifies a review of spend in this category.”

One brand that has seen this result first-hand is accounting platform MYOB. Through a news partnership, the brand saw a 21 per cent uplift in awareness, an 11 per cent increase in favourability, while purchase intent grew a whopping 14 per cent.

MYOB Head of Marketing and Digital ANZ Jane Betschel said: “It has spurred us on to do more. It’s a great way to get to such a big audience.”

These findings sit alongside previous research which has demonstrated advertising in Total News commands more attention and is more memorable than advertising on Facebook or YouTube. Total News was also found to be a better option for advertisers looking to reach light buyers.

The reason for the superior effectiveness of advertising on news platforms is four-fold. First, news audiences invest considerable time reading content, generating lengthy exposure time for brand advertising. Second, the available advertising inventory on news platforms is far superior to other digital channels such as social media and search with MRECS in digital, half and full-page ads in print much more effective at grabbing and holding attention.

Third, context is a superpower of news brands which can deliver up to a 94 per cent increase in attention when ads are placed in contextually relevant content. With three-quarters of Australians reading three or more news categories, news brands to appeal to most sectors of the market.

And finally, with 60 per cent of news readers paying for or subscribing to news, audiences are virtually guaranteed which allows for consistent brand exposure and messaging.

ThinkNewsBrands’ Lyons said: “We set out to identify how news brands can help Australian marketers grow their brands and, as is so often the case with news, it all came back to trust. With 19 million Australians engaging with news every week, advertisers can trust the reach of news.

“You can trust it is seen with dwell times on the rise and news capturing the attention of its readers which creates a halo effect for the advertising that sits alongside it. Advertisers can trust that when they advertise in news, they will see a return on their investment.

“With all this in mind, take a look at your media spend. Five per cent might seem like a small change to make but given what the research tells us, if you’re looking to grow your brand, it could be the best decision you make this year.”

To find out more, read the full research report here.