Next&Co Digital Media Report Reveals $94M Wasted Ad Spend
Waste, which averages 41% of audited spend, is slightly lower than last quarter’s metrics, which revealed a digital advertising waste figure of $134.4 million for the January-March 2022 period.
In its latest report, Next&Co audited 41 companies with digital advertising budgets between $500,000 and $31 million across a mix of ASX-listed, multinational, national and SMB companies.
The data, compiled from Next&Co’s proprietary media audit tool Prometheus, revealed that e-commerce brands wasted the most digital advertising dollars last quarter at $29.2 million. Next come retail trade at $21.7 million, finance ($19.8 million), insurance ($16 million), education ($4 million) and other sectors (2 .8 million dollars).
Across all digital media channels, the most wasted digital ad spend in the second quarter was on Google at $38 million, followed by Facebook ($35 million), LinkedIn ($13 million) and Bing (2 .8 million dollars).
The figures come following the release of Next&Co’s 2021 annual data, which showed a huge waste of $3 billion in digital ad spend, accounting for the billions of dollars that failed to meet business goals. digital advertising.
Co-founder of Next&Co, John Vlasakakissaid, “Even though ad spend has hit a recent industry high, that’s no reason for brands to become complacent about where and how they spend their money. The Ad Waste Numbers show that brands are still struggling to achieve adequate dollar value for their digital ad spend, at a time when capturing audience attention and ROI is more vital than ever.
“We have now used our Prometheus technology to audit hundreds of brands across various industries and all have found varying levels of wasted ad spend. It’s surprising and really shows that now is the time for brands to look at their spending and upcoming campaigns and focus on ROI to really get results.
Next&Co’s Prometheus audit platform is now used by over 500 companies across Australia. It has the ability to tell advertisers exactly how much and where ad spend is wasted on their digital platforms.
Prometheus has built-in advertiser KPIs, including leads, customer conversions, ROI, and reach, allowing brands to choose their targets for each metric. The audit tool then determines
the exact waste of their total annual digital spend in dollars and where that waste occurs, campaign by campaign and at the creative level.
It provides a score out of 100 on the overall performance of each metric and the exact dollar figure of wasted ad spend. The data is then audited individually for each type of advertising activity performed in the tool and an individual score is prepared for each.
Prometheus can also predict the number of conversions advertisers could potentially achieve and make recommendations for improving creatives and CPA (cost per acquisition).