Webinar on Minimizing Waste and Optimizing ROI in Digital Advertising
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Transcript of Webinar on Minimizing Waste and Optimizing ROI in Digital Advertising
© 2013 AudienceScience Inc.
Minimising Wastage and Optimising ROI: a Global CMO Study
Michael Greene, Director of Research, AudienceScience
Belinda Barker, BSB Media
© 2013 AudienceScience Inc.
First annual benchmarking survey
1. The relationship between advertisers and network media agencies
2. The perception of international media brands
3. Buying practices and expenditure changes in the next 18mths
– Online survey conducted in April/May 2013– 300+ international advertisers and agency executives
© 2013 AudienceScience Inc.
Key findings
• Advertisers remain uncertain of the ROI of digital. 40% of advertisers have yet to find a good way to determine ROI.
• Advertisers lack detailed insight on budget allocation. Nearly two-thirds lack details on how and where their money is spent.
• Advertisers underestimate costs from fees, not working media. Advertisers expect about 10% to go to fees (typical fee for a media agency), but don’t take into account other middleman fees and arbitrage.
• Transparency is key to minimising waste. 40% believe a technology that provides transparency into spend would allow them to minimise waste.
© 2013 AudienceScience Inc.
Agency performance
Stategic planning
Creativity
Buying strength
Consumer insight
Return on Investment / ROI
Strong technological solutions
Social responsibility / ethics
67%
67%
66%
64%
63%
58%
58%
Most important criteria when selecting an agency
* Base excludes clients own agency
© 2013 AudienceScience Inc.
Agency performance
Stategic planning
Creativity
Buying strength
Consumer insight
Return on Investment / ROI
Strong technological solutions
Social responsibility / ethics
67%
67%
66%
64%
63%
58%
58%
Most important criteria when selecting an agency All Non-clients
Mindshare Mindshare
UM PHD
Mediacom Mediacom
Mediacom Mindshare / OMD
ZenithOptimedia ZenithOptimedia
Mindshare OMD
MEC Mindshare
* Base excludes clients own agency
© 2013 AudienceScience Inc.
Media performance
Offer a creative and flexible approach
Ability to prove ROI
Professional sales/customer service
Offer multi-platform solutions
Have good research resources
Offer hot new media & technology platforms
90%
75%
75%
75%
73%
67%
Most important attributes to business with media partners
Base: Advertisers
© 2013 AudienceScience Inc.
A Change in the new world order
The Economist
Linked In
MSN
Yahoo
BBC World
The Financial Times
78%
74%
57%
55%
55%
55%
52%
51%
Done business with..(top 8 out of 50 brands measured)
Base: All
© 2013 AudienceScience Inc.
Some media brands are marmite
Series1
Enjoy doing business with….
LoveHate
Financial Times
Wall Street Journal
Odyssey Mobile Brightroll Facebook
+7% +7% +9% -4% -7%Net =
Base: All
© 2013 AudienceScience Inc.
ROI Perception vs Reality
Google The Financial Times Videology
41%
21%
5%
56%
45%
32%
Perception - All Reality - Done business with
Base: All
© 2013 AudienceScience Inc.
No surprise, digital is growing in importance for the CMO.
© 2013 AudienceScience Inc.
Agencies are thinking much more digitally than advertisers
Digital displaySocial media
SearchVideo
Mobile
PrintTV
CinemaRadioOOH
PREvent sponsorship / Promotions
Direct response / mail% budget split
}Total digitalAdvertisers = 30.3%Agencies = 47.8%
Base: Advertisers
© 2013 AudienceScience Inc.
TV still dominates media budgetsWhat percentage of your advertising/communications budget do you expect to spend
on the following in 2013?
© 2013 AudienceScience Inc.
Mobile set to be the next big growth area
Digital display
Social media
Search
Video
Mobile
TV
Cinema
Radio
OOH
PR
Event sponsorhsip / Promotions
Direct response / mail
Anticpated change over the next 18 months
GrowthNeitherDecline
Base: Advertisers
© 2013 AudienceScience Inc.
The big problem: advertisers are still unsure of the efficacy of digital
© 2013 AudienceScience Inc.
40% still haven’t found a good way to measure digital
Which of the following most accurately describes how you determine ROI for your current digital media activity?
© 2013 AudienceScience Inc.
Cost transparency remains a major issue
To what extent does your agency explain the costs associated with digital media activity they manage on your behalf?
© 2013 AudienceScience Inc.
Transparency matters…and not just because it is written into your AOR agreement
More efficiency and
less waste
Deeper insight
Better governance
Smarter strategies
© 2013 AudienceScience Inc.
What does transparency mean in digital media?
1. Where exactly are my ads running?
2. Why are they running there?
3. Who is seeing my ads?
4. How many times are they seeing them?
5. What intermediaries are involved in the process?
6. What am I paying for the intermediaries and the ads?
Six questions your digital media team should be able to easily answer:
© 2013 AudienceScience Inc.
Marketers are dramatically underestimating non-working media costs associated with their digital campaigns
Approximately what percent of your digital media spend goes to margins by your agency and other partners?
© 2013 AudienceScience Inc.
Complex digital advertising supply chains leave lots of room for fees and arbitrage
15%
40%
5%-10%
40%
20%-40%
© 2013 AudienceScience Inc.
Marketers are looking to technology to provide transparency
In your opinion, what is the single most effective way to manage digital media waste?
© 2013 AudienceScience Inc.
What can marketers do to ensure transparency, drive ROI?
• Adopt technology to provide transparency across all digital media buys. 40% percent of advertisers believe that a tool that provides transparency across all buys is ideal for better managing digital media spend.
• Look to manage more technology in-house. 27% percent of advertisers believe that bringing control in-house – as opposed to simply outsourcing all tasks to agencies and other partners – would be most effective for eliminating waste and creating transparency.
© 2013 AudienceScience Inc.
Thanks
Michael Greene
Belinda Barker