According to a new study from Kantar Millward Brown, Getting Media Right, published on Marketing Charts, more than three-quarters of survey respondents said that they look at the channels that best reach their target audience when determining media budget allocations. While more than two-thirds of respondents said that they factor in channels that have been successful for them in the past, 41% said they’re influenced by new marketing channels and industry innovations.
Cost and ROI figure prominently in media mix decisions: 63% are influenced by channels that can be easily measured or demonstrate ROI, while 62% factor in channel costs.
Factors Influencing Media Budget Allocations
% of Respondents
Channels that best reach target audience
Channels that have been successful in the past
Channels that can be easily measured or demonstrate ROI
New market channels/industry innovations
Channels that management trusts
Published on MarketingCharts.com, with Data Source: Kantar Millward Brown, September 2017
It’s understandable, says the report, that marketers would gravitate towards channels that are more measurable, as several pieces of research demonstrate that marketers are struggling to prove ROI and optimize their media mix. While three-quarters of agencies express confidence in their media mix, fewer than half (43%) of their advertiser counterparts do the same.
If there’ll be a beneficiary of the ROI factor, says the report, it seems it will be digital rather than traditional media. 60% of the advertisers, agencies and media companies responding to the survey said that they had a high ability to track ROI for digital channels, with half saying the same about mobile ads and apps.
Only about one-third of respondents reported using ROI or sales metrics to measure the performance of TV and other traditional media channels, likely due to these channels being used more for brand awareness, says the report. In fact, past research has found that large advertisers tend to be slightly more likely to measure the outcome of their TV ad campaigns on the basis of increased brand awareness than increased sales.
About 4 in 10 advertisers and agencies say they trust data from publishers and media partners. There’s a wider discrepancy when it comes to tech companies, DMPs and DSPs, which are trusted by more agencies (53%) than advertisers (37%). And, there’s a much higher degree of confidence in in-house data generated by research of data science teams (>75%), as well as third-party research from vendors or partners (>70%).
Concluding, the report says that given that companies are targeting different audiences, each will have a different ideal mix. But in the aggregate, respondents feel that a best-in-class mix would be allocated as follows:
The report, Getting Media Right, is based on a survey of more than 330 leaders, representing advertisers, agencies and media companies around the world. For a free download of the report, please visit MillwardBrown here: https://www.millwardbrowndigital.com/press/for-the-third-cons ecutive-year-measuring-and-proving-roi-tops-the-list-of-marketers-biggest-challenges/,