Research Shows Billions Wasted as Online Adverts Miss Their Intended Targets

After a survey conducted in the countries of France, Germany and Italy, and the U.K., a research agency claimed that almost half (48 percent) of online adverts do not reach the right people across these countries. Figures revealed on Thursday showed this fact.

It is most likely that billions of online marketing dollars are being wasted, is the statistics released by Nielsen’s Digital Ad Ratings service are to be believed. According to the Interactive Advertising Bureau, Europe as a whole, spent €36.4 billion ($37.9 billion) on digital advertising in 2015.

With only 42 percent of campaigns reaching the people they were aiming for, the worst performing segment was the consumer packaged goods sector which fared the worst when it comes to ad impressions. These digital impressions are referred to as the number of times an online ad is seen by an audience.

Among other advertised sectors that fared well in terms of impressions were shopping and retail segment and the computers and electronics sector, with both clocking 49 percent and the adverts for cars with just 45 percent reaching their intended audience. But with 65 percent of the online advertisement reaching their intended targets was the travel sector which was the best-performing segment.

Managing to reach just over 53 percent of the intended audience versus almost 50 percent for mobile, Nielsen’s figures also showed that advertising via desktop computers fared slightly better than those shown on mobile devices.

Compared to online advertisements aimed at the young audience, with 54 percent of ads reaching those aged between 35 and 64, campaigns aimed at people of that age bracket were more likely to reach the right audience. Online ad campaigns aimed at 18 to 34 year-olds were viewed by only forty-four percent of the target audience.

“Although 100 percent accuracy is likely to remain a pipe-dream, a school report on digital technology’s ability to hit specific audiences might read ‘could do better’,” said Barney Farmer, Nielsen’s marketing effectiveness director in the UK & Ireland.

However digital advertising’s ability to reach people more effectively than other media was praised by Farmer.

“However, in fairness it’s more precise than traditional media and performance is improving all the time, particularly on mobile whose superiority in reaching narrower audiences reinforces its status as the most highly personal ad medium.”

In terms of the online advertisements that managed to reach the right audience was the consumer packaged goods with 58 percent reach, the automotive (55 percent reach), computers and electronics (51 percent reach), shopping and retail (51 percent reach), entertainment (43 percent reach), financial services (43 percent reach), business and consumer services (40 percent reach) and travel (35 percent reach).

These were figures for the four mentioned countries of France, Germany and Italy, and the U.K. for Q2, 2016.

(Adapted from CNBC)


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