New independent report shows value of FWPA marketing activities
The value to industry of FWPA’s promotions program has been highlighted by a recent independent report. Conducted by the Centre for International Economics, the report indicates that FWPA’s investment of $32 million in generic marketing activities during the period 2007-08 to 2014-15 generated a potential return of $213 million, with an estimated benefit cost ratio of 6.6.
In creating the report, the CIE drew upon international studies on the effect of advertising, factors likely to influence the results of advertising in Australia and the market segments for wood and wood products and the likelihood of advertising influencing material selection within them.
The CIE noted that it is important to remember that promotional objectives of FWPA are a cumulative task, not well suited to a single year of investment and measurement of return. This is because FWPA’s generic marketing activities are aimed at firstly building the social licence of the industry and addressing information gaps on the environmental, structural and durability characteristics of wood before then attempting to change purchasing decisions at both the consumer and specifier level.
The Centre for International Economics is a private economic research agency that provides professional, independent and timely analysis of international and domestic events and policies.
The CIE arranges, undertakes and publishes commissioned economic research and analysis for industry, corporations, governments, international agencies and individuals.