Almost 40% of digital media spending, or more than $ 54 million, was wasted by Australian brands pursuing ad campaigns between July and September of this year, according to a new report.
The latest Next & Co quarterly Digital Media Waste Report found $ 54.3 million in media spending as wasted in Australia during the quarter. The numbers are based on an audit of 67 brands in the pharmaceutical, real estate, financial, retail, insurance and education industries, including ASX-listed and private companies. Media budgets for this group ranged from $ 500,000 to $ 27 million.
The data is derived from Next & Co’s media audit tool, Prometheus, which initially found that $ 3 billion is wasted each year on digital media channels. The company’s first report from April to June noted a waste of digital media worth $ 123 million in 115 companies in Australia.
The Prometheus tool uses KPIs defined by advertisers, such as leads, ROI, reach and customer conversions, to audit media activity by campaign as well as by creative. Each is given a score out of 100 against each metric and the ad spend wasted dollar figure is calculated.
By the numbers, the retail industry was the worst for wasted ad spend at over $ 15 million in the quarter. Next is real estate at $ 10.3 million, insurance at $ 8 million, pharmaceuticals at $ 4.8 million and education at $ 2.7 million.
Topping the list of the worst digital channels for waste was Facebook ($ 25 million), followed by Google ($ 20 million), Bing ($ 8 million) and LinkedIn ($ 4 million).
Next & Co co-founder John Vlasakakis said the waste problem highlights a persistent problem in the local and global 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.
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