NEWS8 July 2022

Nielsen report finds underspending in media plans is jeopardising ROI

Data analytics Media News North America

US – Nielsen has released its first-ever ROI report, which identifies gaps in marketers’ budgets, channels and media strategies that are compromising returns on investment (ROI) on media plans.

TV advertising

The global report reveals data and delivers insights on what drives returns on ad spends, how to measure the returns, and how to improve on the metrics brands already have, with content unique to advertiser, agency and publisher audiences.

According to the report, about half of marketers are not spending enough in a channel to get maximum ROI. While a poor ROI might cause brands to pull back on spending, Nielsen finds that spend often needs to be higher to break through and drive returns. Nielsen’s ‘50-50-50 gap’ states that while 50% of media plans are underinvested by a median of 50%, ROI can be improved 50% with the ideal budget.

Beyond budgeting, the ROI report delivers key insights and recommendations to deliver higher ROI across multiple marketing areas, including full funnel marketing, emerging media, ad sales growth strategy and audience measurement.

“Nielsen’s 2022 ROI report serves as a guide for brands, agencies and publishers”, said Imran Hirani, vice-president, media & advertiser analytics.

“In a time when there are more channels than ever to reach desired audiences, it’s critical that insights on ROI are attainable and easy to understand. Brands can't afford to waste valuable ads on the wrong audiences.

“By investing wisely and having a balanced strategy of both upper-funnel and lower-funnel initiatives, brands can reach the right audiences and maximise their ROI.”