Out of alignment

This article argues a misaligned incentive system is a major reason why nearly half of campaigns are ineffective.

Out of alignment

Greg Stuart

Recent research of more than $1 billion worth of advertising reveals that 47 percent of campaigns fail before a single dime is spent on media. This would suggest that the industry has improved little since the 1890s, when merchant John Wanamaker declared, “I know half of the money I spend on advertising is wasted; I just don't know what half.”

In our book, What Sticks,Rex Briggs and I explain the myriad reasons for advertising's continued ineffectiveness, but the one I believe is most problematic is the misaligned incentive system between agencies and...

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