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ROI Digital Media AudienceScience

40% of advertisers don’t think they have found a good way to determine digital media ROI

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By Jennifer Faull, Deputy Editor

November 12, 2013 | 2 min read

35 per cent of advertisers believe that digital media is proven to provide return on investment, but as many as 40 per cent do not believe that they have found a good way to determine digital media ROI, according to a new study from AudienceScience.

The research revealed that senior marketers across Europe feel ill equipped to measure the ROI they make from their digital marketing spend – hindered by the fact that the majority of client marketers are given little insight by their agencies into where their digital budget goes.

Despite 50 per cent of European advertisers expecting to invest more in digital over the next 18 months, the survey found that at the moment advertisers lack detailed insight on digital media budget allocation with the vast majority (63 per cent) reporting no insight at all.

In fact, advertisers who responded to the survey significantly underestimated costs associated with fees and media arbitrage. Earnings records from publicly traded intermediaries show that fees can be in excess of 40 per cent per vendor.

However, many advertisers are unaware of this with 42 per cent believing that less than 10 per cent of their media spend goes to fees and vendor margins from media arbitrage and only two per cent of advertisers believe that more than half of their media budgets go to fees, not working media.

“Global digital advertising is now a $117bn industry, but the speed of its growth means that it has evolved in an overly complex way. Our research shows that advertisers lack the tools and transparency they need to make the most of their digital budget. Only by adopting enterprise technology that ensures transparency and control will advertisers be able to cut out wastage and achieve improved ROI from digital advertising,” explained Mark Connolly, managing director EU and APAC at AudienceScience.

They online survey was carried out in Spring 2013 and involved 240 agencies and 64 clients.

ROI Digital Media AudienceScience

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