Webinar on Minimizing Waste and Optimizing ROI in Digital Advertising

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Global digital advertising is now a $117 billion industry. However, AudienceScience has discovered that many marketers lack the transparency and control needed to effectively measure and optimize …

Global digital advertising is now a $117 billion industry. However, AudienceScience has discovered that many marketers lack the transparency and control needed to effectively measure and optimize their digital campaigns. With digital continuing to grow in importance for marketers globally, it is essential to overcome these limitations, including many of the misconceptions they have about digital advertising.

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  • All respondents were senior executives with responsibility for major media decisions
  • We not only looked at what was important to them but who was good at it. Here you can see the agencies which got the highest ratings for some of the factors. You can see who performed well across all the clients but also among non-clients. Mindshare has a strong positioning for strategic planning, Mediacom for buying strength and ZenithOptimedia for ROI.
  • We not only looked at what was important to them but who was good at it. Here you can see the agencies which got the highest ratings for some of the factors. You can see who performed well across all the clients but also among non-clients. Mindshare has a strong positioning for strategic planning, Mediacom for buying strength and ZenithOptimedia for ROI.
  • Just as the media agencies have to be good at everything so do the media brands and the agencies are more demanding in almost every respect. ROI, creativity and professional service all of importance.
  • For me this was a real surprise, only a matter of years ago - 5 of these brands didn’t even exist. Only 3 out of the top 8 brands are ‘traditional’ media brands.
  • Just because they have done business with them, doesn’t mean you have got to like them, although it may affect willingness to do business with them in future. Being a big brand generally means that you get a strong response you either love or hate them. So both the FT and Facebook create strong emotions in both directions but clearly the FT is overall winner. Smaller brands have less extreme responses but clearly Odyssey is getting some right and Brightroll may need to reconsider their sales strategy.
  • The perceived ability to deliver ROI is important. Yet again Google and the The Financial Times do well, although The FT needs to do something to improve its perception among non-clients as do Videology - they mean win more business that way!
  • Digital now takes a large proportion of the communications pie but there is quite a lot of divergence, agencies believe they are spending far more digitally than the clients measured
  • I don’t think it will be a surprise to anyone that the greatest growth is predicted for digital platforms. While Mobile and search are growing from a low base you can expect to see significant growth as advertisers become more open to new channels.

Transcript

  • 1. Minimising Wastage and Optimising ROI: a Global CMO Study Michael Greene, Director of Research, AudienceScience Belinda Barker, BSB Media © 2013 AudienceScience Inc.
  • 2. 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.
  • 3. 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.
  • 4. Agency performance Most important criteria when selecting an agency Stategic planning 67% Creativity 67% Buying strength 66% Consumer insight 64% Return on Investment / ROI 63% Strong technological solutions 58% Social responsibility / ethics 58% * Base excludes clients own agency © 2013 AudienceScience Inc.
  • 5. Agency performance Most important criteria when selecting an agency All Non-clients Stategic planning 67% Mindshare Mindshare Creativity 67% UM PHD Mediacom Mediacom Mediacom Mindshare / OMD ZenithOptimedia ZenithOptimedia Buying strength 66% Consumer insight 64% Return on Investment / ROI 63% Strong technological solutions 58% Mindshare OMD Social responsibility / ethics 58% MEC Mindshare * Base excludes clients own agency © 2013 AudienceScience Inc.
  • 6. Media performance Most important attributes to business with media partners Offer a creative and flexible approach 90% Ability to prove ROI 75% Professional sales/customer service 75% Offer multi-platform solutions 75% Have good research resources Offer hot new media & technology platforms Base: Advertisers 73% 67% © 2013 AudienceScience Inc.
  • 7. A Change in the new world order Done business with.. (top 8 out of 50 brands measured) Google 78% Facebook 74% The Economist 57% Linked In 55% MSN 55% Yahoo 55% BBC World The Financial Times Base: All 52% 51% © 2013 AudienceScience Inc.
  • 8. Some media brands are marmite Enjoy doing business with…. Net = +7% +7% +9% -4% -7% Love Hate Financial Times Base: All Wall Street Journal Odyssey Mobile Brightroll Facebook © 2013 AudienceScience Inc.
  • 9. ROI Perception vs Reality 56% 45% 41% 32% 21% 5% Google The Financial Times Perception - All Base: All Videology Reality - Done business with © 2013 AudienceScience Inc.
  • 10. No surprise, digital is growing in importance for the CMO. © 2013 AudienceScience Inc.
  • 11. Agencies are thinking much more digitally than advertisers } Digital display Social media Search Video Mobile Total digital Advertisers = 30.3% Agencies = 47.8% Print TV Cinema Radio OOH PR Event sponsorship / Promotions Direct response / mail % budget split Base: Advertisers © 2013 AudienceScience Inc.
  • 12. TV still dominates media budgets What percentage of your advertising/communications budget do you expect to spend on the following in 2013? © 2013 AudienceScience Inc.
  • 13. Mobile set to be the next big growth area Anticpated change over the next 18 months Digital display Social media Search Video Mobile Print TV Cinema Radio Growth Neither Decline OOH PR Event sponsorhsip / Promotions Direct response / mail Base: Advertisers © 2013 AudienceScience Inc.
  • 14. The big problem: advertisers are still unsure of the efficacy of digital © 2013 AudienceScience Inc.
  • 15. 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.
  • 16. 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.
  • 17. 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.
  • 18. What does transparency mean in digital media? Six questions your digital media team should be able to easily answer: 1. 2. 3. 4. 5. 6. Where exactly are my ads running? Why are they running there? Who is seeing my ads? How many times are they seeing them? What intermediaries are involved in the process? What am I paying for the intermediaries and the ads? © 2013 AudienceScience Inc.
  • 19. 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.
  • 20. Complex digital advertising supply chains leave lots of room for fees and arbitrage 15% 40% 20%-40% 40% 5%-10% © 2013 AudienceScience Inc.
  • 21. 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.
  • 22. 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 inhouse – 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.
  • 23. Thanks Michael Greene Michael.Greene@AudienceScience.com Belinda Barker Belinda@bsbmedia.co.uk © 2013 AudienceScience Inc.