An average of 39%, or roughly $ 54.3 million, of digital media ad spend was wasted between July and September of this year, according to the latest quarterly report. Next & Co Digital Media Waste Report.
The data is compiled from Next & Co’s recently launched proprietary media audit tool Prometheus, which, in an initial analysis, found that nearly a third – or $ 3 billion – of digital ad spend was wasted. every year.
The July 1 to September 30, 2021 report audited 67 brands in the pharmaceutical, real estate, financial, retail, insurance and education industries, in ASX-listed, multinational, national and SMEs. The media budgets of these companies ranged from $ 500,000 to $ 27 million.
Waste in the retail sector was the largest, at over $ 15 million. Next come finance, with $ 12.7 million wasted, real estate ($ 10.3 million), insurance ($ 8 million), pharmaceuticals ($ 4.8 million) and education. ($ 2.7 million).
Across all digital media channels, most digital ad spend was wasted on Facebook at $ 25 million, then Google at $ 20 million, Bing at $ 8 million, and LinkedIn at $ 4 million.
Co-founder Next & Co, John Vlasakakis, said the waste problem has highlighted a critical problem in the market.
“A lot of brands are just spending their digital advertising budgets in the wrong places and not leveraging the right platforms for their campaigns,” he said.
“The answer is regular, independent media auditing. These audits allow companies to find spend that isn’t attributed to a conversion, and then look for opportunities to increase their media spend in areas that are working. The primary purpose of audits is to provide brands with an immediate and long-term roadmap for performance and channel strategy – this allows them to really determine whether their current agency is delivering results and, if not, find new avenues to to follow.
The Prometheus audit platform is now used by more than 300 companies.
The Next & Co Digital Media Waste reports will be published quarterly.