News

Next & Co reports 38% of digital media advertising wasted in past six months

Digital performance marketing agency Next & Co has released its latest figures from its Prometheus proprietary media auditing tool, launched in 2021, measuring efficiency of digital advertising spend.

The new findings, covering the period between July and December 2021, suggest $104.3 million in digital media advertising was wasted, from over 130 businesses audited in this time.

The figures also report a larger percentage of ad wastage than those reported in May 2021, at 38% during this six-month period, compared to the previously reported 32%.

Wastage in the retail sector was reported to be the largest, totalling close to $30 million, with finance following in second with $27 million, real estate ($15 million), insurance ($15 million), pharmaceuticals ($13 million) and education ($3 million).

[click to enlarge]

Next & Co’s data found that $3 billion, amounting to almost a third of digital advertising spend globally is wasted annually, this “failing to be effective towards digital advertising commercial objectives”.

The audit covered brands across the pharmaceutical, real estate, finance, retail, insurance and education sectors, across ASX-listed, multinational, national and SME companies, according to the agency.

Co-founder of Next & Co, John Vlasakakis, said: “Brands really need to invest time in auditing their budgeting process to focus on spending smarter, not harder. Having now audited more than 600 brands, we have seen tens of millions of dollars wasted across campaigns that are driving zero value in terms of commercial objectives, by bidding on terms that drive no sales or enquiries, or buying against the wrong demographic and audiences.”

John Vlasakakis

“Brands need to treat their marketing spend as their own money and livelihood. With this attitude, people will take wasted media spend more seriously.”

The agency said that Prometheus has been used by more than 600 companies across Australia to date, offering each the ability to tell advertisers “exactly how much, and where, ad spend is being wasted on their digital platforms”.

 

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.