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


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


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.


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


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


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


A Change in the new world order

Google

Facebook

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


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


ROI Perception vs Reality

Google The Financial Times Videology

41%

21%

5%

56%

45%

32%

Perception - All Reality - Done business with

Base: All


No surprise, digital is growing in importance for the CMO.


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


TV still dominates media budgetsWhat percentage of your advertising/communications budget do you expect to spend

on the following in 2013?


Mobile set to be the next big growth area

Digital display

Social media

Search

Video

Mobile

Print

TV

Cinema

Radio

OOH

PR

Event sponsorhsip / Promotions

Direct response / mail

Anticpated change over the next 18 months

GrowthNeitherDecline

Base: Advertisers


The big problem: advertisers are still unsure of the efficacy of digital


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?


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?


Transparency matters…and not just because it is written into your AOR agreement

More efficiency and

less waste

Deeper insight

Better governance

Smarter strategies


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:


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?


Complex digital advertising supply chains leave lots of room for fees and arbitrage

15%

40%

5%-10%

40%

20%-40%


Marketers are looking to technology to provide transparency

In your opinion, what is the single most effective way to manage digital media waste?


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.


Thanks

Michael Greene

[email protected]

Belinda Barker

[email protected]

mailto:[email protected]

webinar on minimizing waste and optimizing roi in digital advertising

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