Reason #2,354,817 Why Advertisers Can’t Add
A new Citi report makes clear why many mainstream advertisers badly need to be disintermediated or bankrupted or beaten or something. Consider the following three points:
- 21% of people’s time is spent online
- Brand and message recall online were 43% and 33%, while offline they were 15% and 11%
- Average ROI of an online campaign was 153%, with average sales lift of 32%, up 18% and 14% from offline respectively
And then consider this:
- Advertisers allocated less than 10% of total ad spend to online
Did you get that? Advertisers underallocate badly to online based on time spent with the media, a situation made more embarrassing by the underperformance of offline versus online. Yeesh.
Granted, these are squishy numbers, as are all things in marketing (hence the high expense budgets and all the time spent golfing), but assuming they are even in the ballpark advertisers have some ‘splainin’ to do.