Brands Miss Profit by Not Optimizing Media Budgets

Brands Miss Profit by Not Optimizing Media Budgets

A recent Ebiquity study found brands could improve their marketing ROI by 4% if they reallocated spend from outdoor, press and digital display to TV, radio and digital video. It stated that brands are missing a potential of $45 billion in profit by not optimizing media allocation and investing too much in digital display advertising.

There has been a lot of push in all quarters to follow consumers online. But marketers may have overdone it, spending more with less return. If brands reallocated spending to more productive channels, they could spend $15 billion less on media and still generate the same profit.

The Ebiquity study used data from 2,500 campaigns over a three-year period, regionally weighted for a global number. Any digital display and online video, including social channels, were included. Total media invested represents $375 billion in global ad spend, roughly three-quarters (76%) of the total global market.

In their rush to online channels, marketers may have actually overinvested in digital display. The study proves that there is still much more work marketers must do to ensure the best possible ROI. Marketing budgets are always prone to being cut, so it’s more important than ever to use analytics to drive optimization and prove ROI to avoid cuts and potentially grow the budget.

Marketing is an investment, not just an expense. It fuels growth. Brands must be neutral when it comes to where to place their campaigns. Don’t blindly invest in online because you believe that your audience is there. Find out what works best for your brand through proven measurement techniques and let the data determine the best path forward.


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