New Report Finds 37% Of Digital Ad Spend Wasted In Q2

Rows of coins isolated on white background. Finance and banking concept.

An average of 37 per cent, or around $123.3 million in digital media advertising expenditure was wasted in the second quarter of 2021, according to the new quarterly Next&Co Digital Media Wastage Report.

Next&Co’s recently launched its Prometheus proprietary media auditing tool, which in an initial analysis found that almost a third, or $3 billion, in digital ad spend was wasted annually.

The 1 April to 30 June report audited 115 brands from the FMCG, finance, retail, health, insurance and education sectors – across ASX listed, multinational, national and SME companies. Media budgets for these companies ranged from $500,000 to $27 million.

Wastage in the insurance sector was largest at $69 million, although it is also the biggest spending sector. It was followed by health with $50.6 million wasted, education – $42 million, retail – $38 million, FMCG – $26 million and finance – $21 million.

Across digital media channels, the most digital ad spend was wasted on Facebook at $55 million, then Google at $48 million, LinkedIn at $11 million and Bing at $8 million.

The most common sources of waste were overbidding on things such as search terms, buying the wrong demographic and buying ineffective search terms.

Next&Co Co-founder, John Vlasakakis, said the wastage problem is getting worse for advertisers.

“The problem is a combination of internal marketing teams who do the work for their company and agencies on retainer simply not having the right capabilities in digital media to service clients. There always was a talent shortage of skilled performance marketers in Australia and COVID has probably amplified this,” he said.

“The answer is to get your media audited more frequently. Companies need to take the initiative and get an independent view of how well and efficient their current advertising expenditure is performing for them. Whether this audit is with us or someone else, brands need to keep internal teams and agencies on their toes a little more and if they are not improving performance under current spends, the time to switch agency partners is now.”

Prometheus has been used by more than 300 companies. It has the ability to tell advertisers exactly where and how their ad spend is being wasted on digital platforms and by how much.

Prometheus has inbuilt KPIs advertisers can select from, including leads, customer conversions, ROI, reach and they can choose their targets across each metric. The auditing tool then determines the exact wastage of their total annual digital spend in dollars and where that wastage is occurring campaign by campaign and on a creative level.

It provides a score out of 100 on the overall performance of each metric and the exact amount of media dollars wasted. The data is then individually audited for each type of advertising activity run within the tool and an individual score for each.

Prometheus can also predict how many conversions advertisers could potentially achieve, make creative recommendations and CPA (cost per acquisition) improvement recommendations.

The Next&Co Digital Media Wastage Reports will be released each quarter. Next&Co offers Prometheus auditing free of charge to advertisers and can also create bespoke reports for a fee.

 




Please login with linkedin to comment

Next & Co

Latest News

AZK Media Launches Customer Catalyst As Demand For Video Content Grows
  • Advertising

AZK Media Launches Customer Catalyst As Demand For Video Content Grows

Technology PR and marketing agency AZK Media, has launched a pure play video-content business called ‘Customer Catalyst’ as demand for premium video content continues to surge. Lead image: Wayne Williams & Azadeh Williams Research shows 64% of businesses see an increase in website conversions from having a customer testimonial video as part of their marketing […]

G Squared Hires The Hallway’s Chris Murphy To Lead New Creative Arm
  • Advertising

G Squared Hires The Hallway’s Chris Murphy To Lead New Creative Arm

Digital consultancy G Squared has launched a performance media creative division that will be led by The Hallway’s former general manager, Chris Murphy. The new capability enables G Squared clients to tap into a team of creative specialists who will develop, optimise and scale effective campaigns across digital media channels. G Squared said that it […]

Want your business to become more competitive? Invest in people
  • Opinion

Want your business to become more competitive? Invest in people

Learning and development can sometimes fall into the “nice to have” bucket – but John McNerney, managing director AUSEA at Yahoo, makes the case that in a tech-driven age marketing leaders should prioritise their employees’ development if they want to get a leg up on competitors. Good businesses are like ships. They’re places where everyone […]

Gabby’s Dollhouse Stage Show Set To Tour The World From 2025
  • Marketing

Gabby’s Dollhouse Stage Show Set To Tour The World From 2025

Universal Live Entertainment Announces Global Partnership with TEG Life Like Touring to Produce a Live Show Version of DreamWorks Animation’s Gabby’s Dollhouse. DreamWorks Animation, Universal Live Entertainment, and TEG Life Like Touring will be collaborating on a live touring show inspired by the magical world of hit series Gabby’s Dollhouse. TEG Life Like Touring revealed […]