LONDON, August 4, 2015 /PRNewswire/ --
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Proxima's Digital Disconnect
research reveals companies are wasting up to 60% of annual
investment -
Research by procurement services provider Proxima finds
that spend on digital marketing in 2015 is failing to deliver the
value companies should expect. With 50% of total advertising
budgets in the UK (approx. £7.9bn), and around 30% in the US
(approx. £32.9bn) being spent on digital marketing, poor commercial
management means brand and commercial content is not reaching the
right audience.
Procurement services firm Proxima found that up to 60% of global
digital spend is wasted every single year. With up to 35% of all
web activity being fraudulent or artificial[1] and 54%
of online ads not even being seen by a human[2], it is
extremely difficult to correlate ROI back to direct commercial
outcomes.
Companies need to understand how to better 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.
John Butcher, Marketing
Services Director, Proxima, comments, "Achieving better control
of digital marketing investment requires transparency across the
entire spectrum of digital expenditure. For example spend on
direct-to-customer acquisition channels has relatively clear ROI
measures, as there's no intermediary intervention. However, as the
channel map moves from acquisition to engagement/retention, the
number of intermediaries grows and ROI measurement becomes
opaque.
"This opacity is resulting in ineffective digital marketing
spend, fraud and wastage. Aligning agency and client relationship
expectations from the start can help avoid any future problems.
This is where good procurement, acting as the 'marriage counsellor'
between client and agency, can make a difference between a
successful and a bad relationship."
About Proxima
Proxima, a leading global procurement services provider, helps
companies align third-party costs with corporate aims.
Catalytics®, our unique approach
to procurement, offers a profoundly different way to manage your
suppliers, one which is impossible to replicate in-house. Through
our unique managed service, we ensure your suppliers are aligned
with your corporate aims, your money is spent in the right way and
that your business performance is materially improved.
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1. The Association for National Advertisers (USA)
2. The Interactive Advertising Bureau (UK)