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Plus Report - By Thomas Baekdal - January 2015

The Advertising Wake Up Call

In my article "Four Big Trends to Reach 'New Normal' in 2015", I highlighted four major trends that will become the new standard for how we do things this year. One of them is mobile, one is about how we connect and interact with our customers, and the other two are about advertising.

In this article we will take a closer look at this change in advertising because, for many, it will serve as a nasty wake-up call. This will be true for the brands and CMOs who are facing increasing demand for accountability in their ad spending. And it will be true for the media who are faced with a market that isn't going to be swayed by mere traffic stats.

It's about measuring the real impact of your ad campaigns.

So much money lost

One thing that we will see over and over again, this year, are examples of advertising campaigns that just don't work. Let me just show you two that came to my attention within the past month.

The first one is from Fisku, a programmatic advertising agency, who did a study trying to prove that their ads are better than other ad solutions. What they found, though, was this:

The thing you need to look for here is the cost versus the income, and we very quickly see that there is a problem. The cost per impression (CPI) is higher than the average revenue per user (ARPU). In other words, these ads produced negative ROI.

 
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Thomas Baekdal

Founder, media analyst, author, and publisher. Follow on Twitter

"Thomas Baekdal is one of Scandinavia's most sought-after experts in the digitization of media companies. He has made ​​himself known for his analysis of how digitization has changed the way we consume media."
Swedish business magazine, Resumé

 

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