|
Nielsen Report Finds Underspending in 50% of Media Plans Jeopardizing Maximum ROI
Saturday, July 9, 2022
Nielsen's global ROI Report delivers insights and recommendations for advertisers, agencies and publishers to increase returns on investment in media plans
NEW YORK, July 6, 2022 /PRNewswire/ -- Nielsen (NYSE: NLSN) released its first-ever ROI Report, which identified gaps in marketers' budgets, channels and media strategies that are compromising returns on investment (ROI) on media plans. 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 found 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: It is rare for channels to deliver above-average
returns for both brand and sales outcomes, with 36% of media channels
faring above average on both revenue and brand metrics. To grow ROI,
brands should pursue a balanced strategy for both upper and lower funnel
initiatives. Nielsen found that adding upper-funnel marketing to
existing lower- and mid-funnel marketing can grow overall ROI by 13-70%.
-- Emerging media: It is difficult for brands to spend big amounts without
proof that the new media works, but spending small amounts can make it
hard to see if the media is working. Nielsen found that podcast ads,
influencer marketing and branded content can deliver over 70% in aided
brand recall, and that influencer marketing ROI is comparable to ROI
from mainstream media.
-- Ad sales growth strategy: Ultimately, ROI will inform publisher pricing
power. Publishers are not just competing against others in their
channel, but also against other channels, so comparing channel ROIs can
help set pricing strategy. The ROI Report uncovered that social media
delivers 1.7x the ROI of TV, yet social gets less than one-third of TV
ad budgets.
-- Audience measurement: Campaigns with strong on-target reach deliver
better sales outcomes. However, only 63% of ads across desktop and
mobile are on-target for age and gender in the U.S., meaning that on the
channels with the most exhaustive data coverage and quality, over
one-third of ad spend is off-target. To capitalize on opportunity and
drive impact, advertisers should prioritize measurement solutions that
cover all platforms and devices, with near-real time insights.
"Nielsen's 2022 ROI Report serves as a guide for brands, agencies and publishers. 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," said Imran Hirani, Vice President, Media & Advertiser Analytics, Nielsen. "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 maximize their ROI."
This is the first ROI Report produced by Nielsen. The ROI Report findings were generated by Nielsen using a wide range of measurement methods including Marketing Mix Models, Brand Impact studies, marketing plans and expenditure data, attribution studies, and Ad Ratings collected in recent years. In most cases, Nielsen's findings were organized into normative databases or meta-analyses across a sample of studies to produce insights that are representative of Nielsen's experience, providing marketers, agencies and media sellers a more complete view of media effectiveness compared to a single company drawing from its own experience.
Download the report at: https://global.nielsen.com/insights/2022/roi-report/
ABOUT NIELSEN
Nielsen shapes the world's media and content as a global leader in audience measurement, data and analytics. Through our understanding of people and their behaviors across all channels and platforms, we empower our clients with independent and actionable intelligence so they can connect and engage with their audiences--now and into the future.
An S&P 500 company, Nielsen (NYSE: NLSN) operates around the world in more than 55 countries. Learn more at www.nielsen.com or www.nielsen.com/investors and connect with us on social media.
View original content to download multimedia:https://www.prnewswire.com/news-releases/nielsen-report-finds-underspending-in-50-of-media-plans-jeopardizing-maximum-roi-301579287.html
SOURCE Nielsen
|
|
|
|
|
|
 |
Energy Toolbase Launches Energy Storage Partnership with Sungrow to Support PowerStack 255CS and PowerTitan 2.0 | Jan 22, 2026
|
|
Einride and IonQ Partnership Uses Quantum Computing to Optimize the Logistics of Electric and Autonomous Freight | Jan 22, 2026
|
|
RS now offers Phoenix Contact's pioneering new NearFi technology | Jan 22, 2026
|
|
MetaOptics to Showcase Five Breakthrough Metalens-Powered Products at CES 2026 | Jan 22, 2026
|
|
SCAILIUM Debuts "AI Production Layer" to Overcome GPU Starvation and Slash AI Energy Waste | Jan 22, 2026
|
|
No Assembly Required: Barrett Distribution Centers Powers Maxwood Furniture's West Coast DTC Expansion | Jan 22, 2026
|
|
Quantum Art Raises $100 Million in Series A Round to Drive Scalable, Multi-Core Quantum Computing | Jan 22, 2026
|
|
TESSAN to Redefine Global Mobility at CES 2026 with '100 Travelers' Initiative and Flagship Voyager 205 | Jan 22, 2026
|
|
Hesai Recognized as the Only Lidar Company on Morgan Stanley's "Humanoid Tech 25" of Global Robotics Leaders | Jan 22, 2026
|
|
AGS Devices Goes Live With CELUS Design Platform to Support Faster Electronics Design | Jan 22, 2026
|
|
|
|
