Big brands have ‘wasted’ cash on unproven digital advertising, warns Ehrenberg-Bass Institute
Brands are wasting money on targeted digital campaigns and making other flawed marketing decisions amid a false belief they are losing out to smaller rivals, a new report has claimed.
The conclusion was contained in a study by the respected Ehrenberg-Bass Institute, a research body highly regarded in marketing circles.
This is a out of touch I don’t know I where to start. And its the first time I have ever heard anyone tout 40 percent of an audience as being a positive thing.
Ask the big brands how they are going. Look at the power struggle at P & G, and what their CEO has admitted.
And this whole anti programmatic rhe
This is a out of touch I don’t know I where to start. And its the first time I have ever heard anyone tout 40 percent of an audience as being a positive thing.
Ask the big brands how they are going. Look at the power struggle at P & G, and what their CEO has admitted.
And this whole anti programmatic rhetoric is so absurd. If you don’t want to use it, don’t. Meanwhile those who understand how to use it effectively will keep on enjoying the monthly reports from our agencies.
Hello,
I’m not necessarily disagreeing with you, but the article is based on a research study, while your rebuttal is seemingly based on anecdotal evidence/a hunch/derrrr. It would probably be worth including some statistics or research that back up your argument, rather than just saying “believe me, it’s wrong”.
Read the actual report vs. the cherry picking journo version..
https://www.marketingscience.info/are-big-brands-dying/
Wow the ‘Ehrenberg Bass INSTITUTE’ Not so long ago was Uni SA called a College of Advanced Education. Was a nice way of saying after school ?
I cant wait till the PONDS INSTITUTE way in on this issue. They will turn the debate up a notch at the same time as reduce the visible lines of ageing. Win win.
Does an Academic Institute so heavily ‘Sponsored’ by Big Brands actually have a clear head about this?
What a silly post. As if our University history is germane.
Yes we have dozens of sponsors who own big AND small brands ! We do our analysis using unrivalled breadth of information and we report what we find. And we publish and are completely open about our methods so others can check if they desire.
I agree. I’m sick of wasting money on measurable mediums and would prefer to go back to the estimated reach model. Anybody wanna go halvies in sponsoring a blimp?
“Leading brands have probably lost more marketing dollars in this area than start-up companies/brands.”
Probably lost more!
Unfortunate that in a research piece full of supporting facts and figures, this headline and article focuses on the one area of the piece with no such supporting evidence.
Because traditional advertising was so measurable? what a joke. If brands are wasting money on digital then they aren’t reading the reports- because why would you repeat a poor outcome? And if they aren’t reading the reports then how do they know they are wasting their money?
Maybe it’s time for “new media” or “digital” to be deconstructed in these articles- talk about platforms and what digital? so we can even understand what you are talking about? Because if brands still think display ads on the footer of some random website work then SURE digital doesn’t work. If they think that AdWords trumps Facebook ads then sure, digital can be tiresome. And if they haven’t heard of an Instagram influencer then maybe it’s time for retirement. So tired of these articles that just continue to imply digital is a waste of money considering digital is measurable and proven to work if done right.
I think the most pertinent point of this article which seems to have been missed in the commentary above is the underinvestment in creative as a result of all of the media options that are now available ie the shift and emphasis on efficient reach, and the resulting lack of funds to make sure the creative is actually strong enough to ensure those reached take a message away .
This part of the article is bang on …..
Another mistake cited was “creating too much low quality advertising content in an effort to cater for media fragmentation and capitalise on the (over-estimated) value of targeting”.
“The effect has been to increase the percentage of non-working media
Lots of very angry commenters here.. not a lot of factual / statistical rebuttal.
The report isn’t saying not to use digital, just to be wary that proven methods of advertising are still.. proven?
It’s very hard to criticise Ehrenburg Bass after a full read of How Brands Grow, hopefully the bloodletting era of marketing will die out eventually!