Estimating the ROI for Recruitment Marketing and Advertising Expenditure for the Australian Defence Force

Abstract

This thesis analyzes the influence of advertising expenditure for ADF recruitment using data covering the period from June 2008 to December 2011. Econometric analysis was used to analyze the effect of media advertising on ADF enquiries, applications and enlistments. These models were developed to predict the impact of changing advertising expenditure on the generation of enquiries, applications and enlistments. The econometric recruiting models included independent variables for total monthly ADF media expenditure, monthly enlistments targets, national monthly youth unemployment rates and quarterly propensity to enlist in the ADF. Advertising expenditure was found to be positively related to various measures of recruitment. Increasing advertising expenditure was found to generate enquires and applications. For example, a 10% increase in monthly advertising expenditure was found to increase enquiries by 1.6%. Similarly, a 10% increase in monthly advertising expenditure would increase applications by 1.3%. Youth national unemployment and enlistment targets were positively related to enlistments, while advertising expenditure was found to have no effect on enlistments.