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Proxima Finds Up to 60% Of Global Digital Spend Is Wasted Every Single Year

Date: August 3, 2015

Multichannel(s): Digital Marketing

Added by: Mayra Ruiz-McPherson

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New research by procurement services providerProxima, finds that spend on digital marketing such as search engine optimisation, mobile apps and video-on-demand services in 2015 is failing to deliver the value companies should expect. With 50% of total advertising budgets in the UK (totalling around £7.9bn), and around 30% in the US (around £32.9bn) being spent on digital marketing, poor commercial management means brand and commercial content is not reaching the right audience.

Proxima’s marketing specialists found that up to 60% of global digital spend is wastedevery single year. With up to 35% of all web activity being fraudulent or artificial and 54% of online ads not even being seen by a human, there are vast contrasts in spend effectiveness and a lack of transparency. It is therefore extremely difficult to correlate ROI in digital marketing back to direct commercial outcomes.

John Butcher, Marketing Services Director, Proxima, comments, “There are several factors causing a disconnect between digital activity and commercial outcomes: fear vs. rational thought as a driver for action; a generational gap within teams; measuring inputs vs. true business outcomes; and the gap between what is known and what is unknown in digital marketing. All of these factors combined create a lack of transparency and consequently, a lack of control over this significant area of business spend.”

Companies need to better understand how to buy digital marketing tools and channels, how to work with third party media networks and ultimately manage the digital marketing budget better. The involvement of procurement can help marketing leaders highlight the effectiveness (ROI) for each channel and component of digital marketing investment.

Source: Proxima

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