Big advertisers: Top of funnel ad effectiveness declining
More than a third of the world’s largest advertisers think the effectiveness of top of funnel ‘awareness’ or brand building advertising is declining. They blame clutter, ad avoidance and declining reach and trust. Meanwhile, almost three quarters think the effectiveness of performance advertising has increased (Marketing Week).
Key points:
- World Federation of Advertisers survey finds 37% of marketers at world’s top 70 advertisers think effectiveness of awareness advertising has decreased over last five years
- 72% think effectiveness of performance marketing has increased
- Yet 55% spend mostly on awareness advertising, 31% have an even split
- Data and programmatic advertising top priorities over next three years, followed by influencer marketing and voice marketing
Quarterly reporting and pressure to deliver fast results compound challenges for marketers adapting to a rapidly shifting landscape. Yet most are still spending more on awareness. The perennial challenge is measuring the impact of long-term uplift against short-term tactical spending and targets – and finding and engaging audiences across an ever-growing number of (increasingly cluttered) channels. But what's new?
The report has some other interesting findings: The narrative around in-housing is overcooked, with three quarters of marketers spending more with agencies on traditional media buying and two thirds spending more on ‘big ticket’ creative. It’s the low margin stuff they are taking in house.
It also found two thirds of marketers think they are obsessing over their own problems and two thirds think brand purpose advertising is failing due to lack of authenticity. Time for a change of tack?
