Seventy percent of advertising campaigns fail to generate meaningful ROI

Stephen Whiteside

Seven in ten advertising campaigns generate a return on investment (ROI) that is less than less than £2 in revenue for every £1 spent, calling their profitability into question.

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Seventy percent of advertising campaigns generate a return on investment (ROI) that calls their profitability into question.

That finding came from a study incorporating 343 campaigns, collectively accounting for £5 billion in adspend, in the Advertising Research Community (ARC) database, an effectiveness resource developed by Dr. Grace Kite, the founder of UK-based analytics consultancy Magic Numbers.

All the featured campaigns have been subject to econometric modeling to assess the drivers of their ROI, whether good or bad. The ARC database also mixes award-winning programs with initiatives which have...

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