On June 6, 2018, Nielsen, a global measurement and data analytics company, released the first annual Nielsen CMO Report. The research for this report is based on interviews and survey data collected from CMOs across the country. While the report highlighted the importance of traditional media, the biggest takeaway is that with so many different marketing channels being combined and used simultaneously, it grows increasingly more difficult to track results of campaigns.
Even with a clear rise in digital media, the report did not understate the importance of traditional media. The report says, “Radio continues to lead all channels in terms of weekly reach in the U.S. and a full 45% of respondents thought radio to be an effective channel.” They also reported how high reach media—such as television and radio—fit nicely with brand awareness campaign objectives seeking to fill the top of the sales funnel and for brand building.
Surprisingly, for both traditional and digital media, only one in four marketers reported high levels of confidence in their ability to measure the ROI of their media spend. Because marketers do not feel confident in this regard, Nielsen reports that 79% “expect to increase their investment in marketing analytics and attribution in the next 12 months.” These findings amplify the desire of marketers to be able to see clear data regarding how their campaigns performed.
Because marketers want identifiable data that shows how their ROI’s fared, they consequentially want to make sure that they are not wasting any resources and funds on underperforming campaigns. To improve media efficiency and limit advertising waste across the digital ecosystem, Nielsen reported how marketers want to increase reach and frequency measurement (82% ranked it the most important capability), ad viewability (73%) and data management platforms (62%).
Counteracting advertising waste can be challenging, especially when it comes to ensuring that the marketing campaign reached its intended audience. According to the Nielsen Digital Ad Ratings Benchmarks Report, only 59% of all the online and mobile campaigns measured by Nielsen from Q1 2014 through Q2 2017 were delivered to their intended target demographic category. This means that 41% of campaign impressions from online and mobile missed the mark and were delivered to a different audience than the advertiser intended.
In order to make sure marketing campaigns are generating a strong ROI that is quantifiable, as well as limit their advertising waste, many marketers are turning to agencies. Nielsen reports that 43% of respondents plan to increase spending with their agencies over the next 12 months. This is likely due to their confidence in the agencies’ ability to deliver a strong return on investment, as reported by 84% of respondents.
Looking towards the future, marketers increasingly want to work with agencies that can clearly define the ROI that the campaign will generate and that the agency can quantify and track all results of the campaign.