Asia Pacific marketers feel the least confident (55%) in measuring social media ROI, unlike their counterparts in Latin America who were most confident (86%). Meanwhile, marketers in North America were somewhat confident (59%) in measuring social media ROI and this number was slightly behind paid search 60%, according to Nielsen’s latest study titled "Era of Alignment Future-Focused Strategies”.
Globally, marketers are most confident in their ability to measure ROI across social media, with 64% of those surveyed saying they are extremely or very confident. According to the study, the lack of ROI-proving confidence in these preferred channels suggests an opportunity for martech providers to help brands improve their execution and results. Perhaps more important is the lack of confidence that global marketers have in measuring ROI across other paid and traditional channels.
The marketers surveyed spent more than half of last year's ad budgets on digital channels, noting significant planned increases over the next year. Despite expanding into new channels, however, many marketers expressed "lackluster confidence" in being able to prove ROI.
Almost half (49%) of global marketers, for example, said they plan to increase their spending on podcasts over the next year, with 11% planning increases of more than 50%. That said, their confidence in measuring the ROI of that investment is fairly low. Only 44% are either extremely or very confident.
Globally, 65% of marketers believe new formats such as podcasts, brand integrations, and sponsorships are greatly important to marketing strategies. This sentiment is less in Asia Pacific (59%) and EMEA (58%) but greater in North America (71%) and Latin America (73%).
Although consumer journeys are siloed into certain platforms and channels, only 54% of marketers globally are confident in their ability to measure full-funnel ROI. Interestingly, the study found that 73% of marketers worldwide express satisfaction with their measurement tools.
To attain short-term sales while building long-term growth, marketers are advised to run effectiveness studies for both short- and long-term ROI. One way to do this is to run marketing mix models to optimise channel mix for short-term sales, and then use a second analysis to optimise channel mix for awareness or other upper-funnel metrics. Brands should also look at plans and weigh them based on organisational goals. According to Nielsen, this should help brands create a more balanced plan that supports both their short-term needs and long-term ambitions.
Photo courtesy: 123RF
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