Marketing Ebiquity News

Ebiquity claims marketers can generate $45bn in profit through better media optimization


By Ronan Shields | Digital Editor

June 20, 2018 | 3 min read

A study published today (June 20) asserts that better allocation of marketing spend could result in approximately $45bn more profit globally for brands each year.

Budget Allocation

Ebiquity came to the conclusion following a three-year study analyzing more than $375bn in media spend / Ebiquity

Ebiquity came to the conclusion after analyzing the “profit impact” of 2,500 ad campaigns (representing $375bn in media spend) over three years in a bid to better understand how marketers can optimize their ad campaigns, plus demonstrate how their ad spend helps their organization generate revenue.

The findings of the study claim that had the same spend – representing approximately 76% of the total advertising market – been better optimized based on the ROI contributions of each channel, it would have generated an extra $45bn in global profits for brands.

Mike Campbell, Ebiquity, head of international effectiveness, said a better use of measurement and analytics, can help marketers reevaluate their budget allocation and subsequently produce dramatically better results.

Michael Karg, Ebiquity, chief executive officer, added: “As media, content, and customer experience options proliferate, brands fundamentally need to know what works well for them and what doesn’t. This study is an important reminder that marketing spend still has a positive bottom-line impact and should be treated as an investment, not as a cost.”

Those channels assessed in the study include TV, radio, press, out-of-home (OOH), plus digital display, and video, including broadcaster video on demand (VOD) plus streaming outlets such as YouTube, but excludes search info – representing roughly half of all digital spend.

Marketers are under increasing pressure to demonstrate the ROI of their ad spend, as procurement departments increasingly push the agenda of budget optimization through methods such as zero-based budgeting, with vendors in the sector eager to satisfy this growing demand.

Earlier this week, Adobe kicked off its promotional activity with the unveiling of an attribution tool dubbed Attribution IQ that it can help marketers better discern where to focus their marketing interventions, such as paid-for media, email pushes, thus reducing their reliance on first- and last-click attribution models.

Marketing Ebiquity News

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Ebiquity is a leading independent marketing and media consultancy, focused on helping brands make better informed marketing investment decisions. We work with 80 of the world’s top 100 global advertisers and offer full coverage of the world’s largest advertising markets. We are a global leader in financial transparency and marketing data analytics with one of the largest pools of advertising spend data and an award-winning marketing data analytics team.

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