Aussie retailers lead in digital ad spend waste

Australia’s retailers will account for almost a quarter of more than A$130m of wasted digital ad spending this quarter, according to a report from performance marketing agency Next&Co.

Key statistics

Next&Co audited 81 companies with digital ad budgets of between $500,000 to $39m across a mix of ASX-listed, multinational, national and SME companies and concluded: 

• Digital advertisers will waste more than $134.3m in the March quarter. 
• Brands in the retail sector will waste most, at almost $31m, followed by insurance ($28m), finance ($25.5m), real estate ($18.8m), education ($16m) and health ($14.7m).
• Across media channels, most spend will be wasted on Facebook ($52m), followed by Google ($43m), LinkedIn ($28m) and Bing ($10.7m).

Why it matters

During 2021, Next&Co found that $3 billion of digital ad spend failed to achieve commercial objectives and expects the figure to be even higher this year. It suggests that in some cases a focus on price and getting the cheapest rate may be distracting from auditing actual outcomes.

Key quote

"Spending smarter and not harder needs to be the attitude amongst brands of all sizes as this is how scale and company growth can be achieved” – John Vlasakakis, co-founder, Next&Co.

Sourced from Ad News [Image: Debora Cardenas on Unsplash]