RSS feed Get our RSS feed

News by Topic

BizReport : Advertising archives : November 18, 2013

AudienceScience: Bulk of ad budgets wasted

Half of Eurpoean advertisers say they'll invest more in digital ad efforts over the next year, a solid sign for the online space. But, according to new data out from AudienceScience, 40% also say they aren't sure about the ROI of their online efforts. About one-third (35%) say they have 'proven ROI' from their online efforts.

by Kristina Knight

Mark Connolly, Managing Director EU & APAC at AudienceScience, said, "Global digital advertising is now a $117 billion industry, but the speed of its growth means that it has evolved in an overly complex way. Our research shows that advertisers lack the tools and transparency they need to make the most of their digital budget. Only by adopting enterprise technology that ensures transparency and control will advertisers be able to cut out wastage and achieve improved ROI from digital advertising."

The study was a joint effort between AudienceScience, BSB Media and The Vision Network. Some interesting findings include:

• 17% of those surveyed farm out all digital decisions to an agency
• 63% say they have 'little or no' insight from their ad agencies about campaign ROI
• 40% of advertisers believe they need greater transparency from their agencies
• 27% say bringing ad decisions in-house is their best option

Perhaps most disturbing about the report is that marketers don't seem to know what they are paying for agencies to take on these ad decisions. The researchers found that just over 40% of marketers believe they are spending 10% or less of their ad budgets on vendor fees and margins when, in fact, many agency fees can be over the 40% mark.

Image via Shutterstock

Tags: ad waste, advertising, advertising budgets, advertising trends, AudienceScience, budget waste

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.