New opportunities for marketers to align ROI perception with reality

by | Jan 27, 2020 | Marketing, Public Relations

A new report from Nielsen sheds new light on how marketers perceive the effectiveness of digital and traditional channels, if their perception is driven by measurement data they can trust, and what ultimately influences budget decisions.

Consumers’ path to purchase is growing more fragmented by the day. Marketers need to know which channels will effectively reach consumers along their journey in order to create the marketing mix that works best. Yet Nielsen found that investments in channels are often driven by a sense of effectiveness that isn’t entirely grounded in reality, leading to wasted spend and missed opportunities.

Confidence in ROI measurement for digital channels:

New opportunities for marketers to align ROI perception with reality

The research, based on a Nielsen survey with marketers at more than 360 brands and agencies around the globe, found that:

Marketers hold digital channels to a different standard than traditional channels, despite lack of confidence in ROI

Digital channels are perceived to be effective and invite more spending, even when that effectiveness cannot be readily verified.

Data quality is a top priority for just 28 percent of respondents

Despite the benefits of using high quality data, data quality ranks low on the list of marketing priorities—well behind targeting, ad creative and reach.

Marketers place a much higher priority on advertising than trade promotions

Most marketers discount the value of trade promotions, despite opportunities to use them to learn about their customers’ in-store purchase behaviors.

Marketplace challenges are slowing the adoption of over-the-top TV

To capitalize on the promise of OTT, brands must overcome internal knowledge gaps and partner with vendors to address measurement and media planning efficiency/ transparency concerns.

Marketers prioritize new customers over old

Despite the value of existing customers, the majority of marketers are focused on acquiring new customers and increasing branding awareness, with just 8 percent of marketers focused on reducing churn.

Relative importance of media categories for brands and agencies:

New opportunities for marketers to align ROI perception with reality

“Marketers are seeking greater accountability in today’s increasingly omnichannel landscape, yet we learned through this study that their investments in media are often driven by perception versus reality,” said Matt Krepsik, global head of analytics at Nielsen, in a news release. “The good news is that the industry is working hard to bring credible measurement solutions to market, not just to make sense of newer digital channels, but to provide comparable metrics across all channels. Only then can marketers think holistically and make smarter investments across the entire customer journey.”

New opportunities for marketers to align ROI perception with reality

Download the full report here.

The survey responses were collected between January and March 2019. The sample consists of 247 brand executives and 116 agency executives for a total of 363 respondents, with nearly 80 percent of participants at the Director level and above.

Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 17 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richard.carufel@bulldogreporter.com; @BulldogReporter


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