Many marketers are compromising returns on investment on media plans by not spending enough, accoridng to a study by Nielsen.
The global 2022 ROI Report reveals data and delivers insights on what drives returns on ad spends, how to measure the returns, and how to improve on the metrics brands already have, with content unique to advertiser, agency and publisher audiences.
According to the report, about half of marketers are not spending enough in a channel to get maximum ROI.
While a poor ROI might cause brands to pull back on spending, Nielsen found that spend often needs to be higher to break through and drive returns.
Nielsen’s “50-50-50 Gap” states that while 50% of media plans are underinvested by a median of 50%, ROI can be improved 50% with the ideal budget.
“In a time when there are more channels than ever to reach desired audiences, it’s critical that insights on ROI are attainable and easy to understand,” said Imran Hirani, vice president, media & advertiser analytics.
“Brands can’t afford to waste valuable ads on the wrong audiences. By investing wisely and having a balanced strategy of both upper-funnel and lower-funnel initiatives, brands can reach the right audiences and maximize their ROI.”
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