A study by Ebiquity, released yesterday in Cannes, analysed some 2,500 campaigns over three years, regionally weighted in order to build a global number, with the total media investment representing $375bn in global ad spend, or roughly 76% of the total global advertising market.
The focus was on channels where the profit impact at different spend levels could be assessed – so traditional media along with digital display and digital video but not search. Other factors that affect advertising effectiveness such as ad fraud, viewability and bot traffic were not considered.
Had that same spend been optimised based on the ROI contributions of each channel, it would have generated an extra $45bn in global profits for brands, Ebiquity reported.
Interesting article on the potential profits generated by better resource allocation in advertising. The study is essentially media and digital based. Consider if we included all marketing and communication spend (point of sale, point of consumption when applicable, sponsoring, etc.).
→ Read the article.