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Which Half of my Advertising is Wasted? (It is only half? Or more?)

John_Wannamaker

This post is by Darren Woolley, Founder of TrinityP3With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.

“Half my advertising spend is wasted; the trouble is I don’t know which half.”

This quote is regularly attributed to either the US retail magnate, John Wanamaker (above), or to the UK industrialist, Lord Leverhulme (below), depending on which side of the Atlantic you were trained. The quote has become a cliché for the uncertainty about the effectiveness (or ineffectiveness) of advertising.

When you Google the phrase “half my advertising is wasted” you end up with 21,700,000 results, showing that even in the age of internet advertising, “half is wasted” is vividly real.

Every time the quote is trotted out at an industry event, half the audience groans while the other half giggles nervously, eyes down, averting contact. It is unclear if this reaction comes from those who are ashamed to be caught at an advertising conference or from a belief that the 50% figure is ridiculously low or ridiculously high. What seems to be acknowledged, though, is the belief that advertising is an unaccountable cost of business. Unaccountable is not a good place to be in an era that worships increased shareholder value.

Why does the industry do little to prove John Wanamaker (or Lord Leverhulme) wrong?

Imagine any other profession, and I use the term advisedly, tolerating the belief that half of its effort is wasted? Who would work with an accountant who files tax returns that are right only half the time? Who would work with a lawyer who loses half of his / her cases? Who would seek out a doctor whose diagnostic hit-rate is only 50% right? (Dead and buried does not mean forgotten!).

The advertising industry loves to perpetuate the myth that half of its spend is wasted, and that’s just how it is. You can’t win all the time. Is the click real or fraudulent? Human or bot? Who cares? It’s a flip of a coin, heads or tails, wasted or not. It’s the 50% rule!

Researchers Rex Briggs and Greg Stuart took on the myth directly in 2006, publishing their book “What Sticks: Why Most Advertising Fails and How to Guarantee Your’s Succeeds.” After examining more than $1 billion of marketing spend for 1 million consumers by 30 major corporations, they discovered that the marketing spend in question had an overall effectiveness rate of no more than 37%.

If marketers said “63% of my adverting spend is wasted,” this would not have quite the same ring as John Wanamaker’s 50% phrase, but it would be more accurate. Briggs and Stuart figured out why nearly 2/3rds of marketing expenditures were wasted, concluding that the waste came from a poor understanding of consumer motivations coupled with inaccurate messaging delivered with an inappropriate media mix. Bingo. Target missed.

This is worse than the flip of a coin. Getting consumer motivations wrong is a serious problem. So is inaccurate messaging. So is an inappropriate media mix. If this is the best that marketing can do, it’s a sad commentary on the professionalism of its marketing practitioners.

The Briggs and Stuart results were from 2006, at about the time that marketers pivoted to deal with the challenges of digital and social marketing. Digital and social challenges added complexity and may have distracted marketers from correcting the underlying consumer, messaging and media mix mistakes identified by Briggs and Stuart. Digital and social adds fraud to waste levels. Recent analyses show fraud levels of 23% for social display ads and 31% for news video ads on iPhones. Fraud levels simply increase waste levels, probably above the original 63% level calculated by Briggs and Stuart.

Fifty years of Effectiveness Awards demonstrates that advertisers and their agencies have an interest in becoming more effective, and we have recently seen an increased desire of marketers to drive brand growth for their organisations. This is both good and important.

Equally important, then, is the need to be more honest, and to declare that Wanamaker and Lord Leverhulme were hopeless optimists who left us with the unrealistic belief that we were wasting only 50% of our marketing spend.

An updated version of Wanamaker’s phrase is now required.

Nearly two thirds of our advertising spend is wasted
— and we are trying very hard to fix it
.”

This article was first published in Media Village on September 4, 2019

TrinityP3 has developed a suite of products aimed at increasing your marketing performance to achieve improved business outcomes. Find out more here

 

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    Darren is considered a thought leader on all aspects of marketing management. A Problem Solver, Negotiator, Founder & Global CEO of TrinityP3 - Marketing Management Consultants, founding member of the Marketing FIRST Forum and Author. He is also a Past-Chair of the Australian Marketing Institute, Ex-Medical Scientist and Ex-Creative Director. And in his spare time he sleeps. Darren's Bio Here Email: darren@trinityp3.com

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    Which Half of my Advertising is Wasted? (It is only half? Or more?)

    John_Wannamaker

    这个帖子是由Trinityp3 的创始人达伦·伍利创作的。 凭借着他作为分析科学家和创造性问题解决者的背景, 达伦为营销过程带来了独特的见解和经验分享。 他被认为是机构薪酬、搜索和选择以及关系优化方面的全球思想领袖。

    “我一半的广告费用被浪费了;麻烦的是我不知道哪一半。

    这句话经常被归结为出于美国零售业巨头约翰·瓦纳梅克(上图),或者英国实业家勒弗胡姆勋爵(下图)之口,这取决于你来自于大西洋的哪一边。 这句名言已成为不确定广告的有效性(或无效)的陈词滥调。

    当你在谷歌搜索短语”我的一半广告被浪费了”,你最终有21,700,000的结果,表明即使在互联网广告的时代,”一半是浪费”是真实存在的。

    每次在行业活动上抛出这句话时,一半观众都在无奈感慨,而另一半则眼睛向下,避免与人目光对视,紧张地咯咯地笑。 不清楚这种反应是否来自那些为在广告会议上被抓而感到羞愧的人,还是来自于那些认为50%这个数字低得离谱或高得离谱的人。 然而,大家都认同,广告是一种难以解释的商业成本。在一个崇尚股东价值增长的时代,难以解释并不是一个好事。

    为什么这个行业没有做什么来证明约翰·瓦纳梅克(或勒弗胡姆勋爵)是错的?

    让我们想象一下任何其他领域,如果我明智地使用这个术语,容忍一半的努力被浪费了? 谁会与一个只有一半是做对的纳税申报会计师合作? 谁会与打输一半案件的律师合作? 谁会找一个诊断命中率只有50%的医生呢? (死亡和埋葬并不意味着被遗忘!

    广告业有个永恒的不解之谜,即一半的花费被浪费,这个行业就是这样。 你不可能一直赢。 点击是真实还是虚假的? 人点击还是机器人在点击? 谁在乎啊? 就像投掷一个硬币,正面还是反面,浪费与否。 这是50%的定律

    研究人员雷克斯·布里格斯和格雷格·斯图尔特在2006年直接针对这个不解之谜,出版了他们的书《What Sticks: Why Most Advertising Fails and How to Guarantee Your’s Succeeds》。 在检查了30家大公司为100万消费者提供的10亿多美元的营销支出后,他们发现,有关营销支出的总体有效性不超过37%。

    如果营销人员说”我的广告花费有63%被浪费了”,这和约翰·瓦纳梅克的50%被浪费的说法不完全一样,但更准确。 布里格斯和斯图尔特找出了为什么近2/3的营销支出被浪费,得出的结论是,这些浪费来自对消费者动机的不了解,再加上不准确的信息传递与不适当的媒体组合。 瞧。 目标客户未命中。

    这比掷硬币还糟。 把消费者的动机搞错是一个严重的问题。 不准确的消息也是。 不适当的媒体组合也是如此。 如果这是营销所能做到的最好结果,那就是营销从业者的悲哀。

    布里格斯和斯图尔特的研究结果来自2006年,当时营销人员正致力于应对数字和社交营销的挑战。 数字和社交挑战增加了复杂性,并可能分散营销人员的注意力,其实无法正确识别潜在客户。这点已经被 Briggs 和 Stuart 证实。 数字和社交带来了虚假从而增加浪费程度。 最近的分析表明,社交展示广告的虚假程度为 23%,iPhone 上的新闻视频广告的虚假为 31%。虚假数据只会增加浪费水平,可能高于布里格斯和斯图尔特之前计算的 63 %。

    五十年的有效性奖表明,广告商及其广告代理机构对提高效率感兴趣,近些年,我们见证了营销人员推动品牌增长的愿望在不断的增加。 这是个很重要的好现象。

    同样重要的是,需要更加真实性,并宣布瓦纳梅克和勒弗胡尔姆勋爵是绝望的乐观主义者,他们让我们错误地认为,我们只浪费了50%营销支出。

    现在瓦纳梅克的短语需要被更新。

    我们近三分之二的广告费用被浪费了,
    但是我们正在努力修复它。

    本文于2019年9月4日在Media Village首次发表

    TrinityP3 开发了一套旨在提高营销业绩的产品, 以帮助你取得更好的业绩。 点击此处了解更多

     

    Want more articles like this? Subscribe to our newsletter:



      Darren is considered a thought leader on all aspects of marketing management. A Problem Solver, Negotiator, Founder & Global CEO of TrinityP3 - Marketing Management Consultants, founding member of the Marketing FIRST Forum and Author. He is also a Past-Chair of the Australian Marketing Institute, Ex-Medical Scientist and Ex-Creative Director. And in his spare time he sleeps. Darren's Bio Here Email: darren@trinityp3.com

      We're Listening

      Have something to say about this article?
      Share it with us on Twitter, Facebook or LinkedIn

      Which Half of my Advertising is Wasted? (It is only half? Or more?)

      John_Wannamaker

      这个帖子是由Trinityp3 的创始人达伦·伍利创作的。 凭借着他作为分析科学家和创造性问题解决者的背景, 达伦为营销过程带来了独特的见解和经验分享。 他被认为是机构薪酬、搜索和选择以及关系优化方面的全球思想领袖。

      “我一半的广告费用被浪费了;麻烦的是我不知道哪一半。

      这句话经常被归结为出于美国零售业巨头约翰·瓦纳梅克(上图),或者英国实业家勒弗胡姆勋爵(下图)之口,这取决于你来自于大西洋的哪一边。 这句名言已成为不确定广告的有效性(或无效)的陈词滥调。

      当你在谷歌搜索短语”我的一半广告被浪费了”,你最终有21,700,000的结果,表明即使在互联网广告的时代,”一半是浪费”是真实存在的。

      每次在行业活动上抛出这句话时,一半观众都在无奈感慨,而另一半则眼睛向下,避免与人目光对视,紧张地咯咯地笑。 不清楚这种反应是否来自那些为在广告会议上被抓而感到羞愧的人,还是来自于那些认为50%这个数字低得离谱或高得离谱的人。 然而,大家都认同,广告是一种难以解释的商业成本。在一个崇尚股东价值增长的时代,难以解释并不是一个好事。

      为什么这个行业没有做什么来证明约翰·瓦纳梅克(或勒弗胡姆勋爵)是错的?

      让我们想象一下任何其他领域,如果我明智地使用这个术语,容忍一半的努力被浪费了? 谁会与一个只有一半是做对的纳税申报会计师合作? 谁会与打输一半案件的律师合作? 谁会找一个诊断命中率只有50%的医生呢? (死亡和埋葬并不意味着被遗忘!

      广告业有个永恒的不解之谜,即一半的花费被浪费,这个行业就是这样。 你不可能一直赢。 点击是真实还是虚假的? 人点击还是机器人在点击? 谁在乎啊? 就像投掷一个硬币,正面还是反面,浪费与否。 这是50%的定律

      研究人员雷克斯·布里格斯和格雷格·斯图尔特在2006年直接针对这个不解之谜,出版了他们的书《What Sticks: Why Most Advertising Fails and How to Guarantee Your’s Succeeds》。 在检查了30家大公司为100万消费者提供的10亿多美元的营销支出后,他们发现,有关营销支出的总体有效性不超过37%。

      如果营销人员说”我的广告花费有63%被浪费了”,这和约翰·瓦纳梅克的50%被浪费的说法不完全一样,但更准确。 布里格斯和斯图尔特找出了为什么近2/3的营销支出被浪费,得出的结论是,这些浪费来自对消费者动机的不了解,再加上不准确的信息传递与不适当的媒体组合。 瞧。 目标客户未命中。

      这比掷硬币还糟。 把消费者的动机搞错是一个严重的问题。 不准确的消息也是。 不适当的媒体组合也是如此。 如果这是营销所能做到的最好结果,那就是营销从业者的悲哀。

      布里格斯和斯图尔特的研究结果来自2006年,当时营销人员正致力于应对数字和社交营销的挑战。 数字和社交挑战增加了复杂性,并可能分散营销人员的注意力,其实无法正确识别潜在客户。这点已经被 Briggs 和 Stuart 证实。 数字和社交带来了虚假从而增加浪费程度。 最近的分析表明,社交展示广告的虚假程度为 23%,iPhone 上的新闻视频广告的虚假为 31%。虚假数据只会增加浪费水平,可能高于布里格斯和斯图尔特之前计算的 63 %。

      五十年的有效性奖表明,广告商及其广告代理机构对提高效率感兴趣,近些年,我们见证了营销人员推动品牌增长的愿望在不断的增加。 这是个很重要的好现象。

      同样重要的是,需要更加真实性,并宣布瓦纳梅克和勒弗胡尔姆勋爵是绝望的乐观主义者,他们让我们错误地认为,我们只浪费了50%营销支出。

      现在瓦纳梅克的短语需要被更新。

      我们近三分之二的广告费用被浪费了,
      但是我们正在努力修复它。

      本文于2019年9月4日在Media Village首次发表

      TrinityP3 开发了一套旨在提高营销业绩的产品, 以帮助你取得更好的业绩。 点击此处了解更多

       

      Want more articles like this? Subscribe to our newsletter:



        Darren is considered a thought leader on all aspects of marketing management. A Problem Solver, Negotiator, Founder & Global CEO of TrinityP3 - Marketing Management Consultants, founding member of the Marketing FIRST Forum and Author. He is also a Past-Chair of the Australian Marketing Institute, Ex-Medical Scientist and Ex-Creative Director. And in his spare time he sleeps. Darren's Bio Here Email: darren@trinityp3.com

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