Actually nothing as things are getting worse and we aren't becoming wiser with age and experience. Lord Leverhulme was aware already in 19th century that half of his marketing budget was wasted as he expressed it:
“I know that half of my advertising budget is wasted, but I’m not sure which half”
Over 100 years later, things haven't improved at all. According to The Global Marketing Effectiveness Report that surveyed 3,000 marketing professionals across the globe, 65% of marketing spend had no effect on consumers in 2007.
The report's findings should be wake up call for all involved in marketing and advertising:
- 65% of all marketing spend in 2007 had no effect on consumers.
- Estimated wastage rates varied from 45% for business-to-business marketers, through to 65% for business-to-consumer
- Just one in ten of respondents have automated systems in place to track the effectiveness of their spend
- Of the 55% of marketers who do track the results of their spending, 80% do so manually, spending hours capturing, compiling and analyzing data.
- Questioned on strategy, 70% of marketers believe that short-term revenue-boosting and lead-generation campaigns are more important than long-term intangible brand building (15%). A clear indication that marketers are under pressure more than ever before to generate results
- Tracking marketing effectiveness topped the 2008 wish lists of 35% of marketers, and made the top three for 70%.
We have reached the point of very huge wastage of the billions dollars invested in marketing. Those money bring no effect due to old-fashioned methods and stereotypes used. Times has changed, people haven't changed as such but we've gained very valuable knowledge about people and their behavior which we choose to oversee and keep on pouring money down the drain stuck to routines and fearing to challenge the way we think. After all "no one has ever been fired for using TV"
It is time we get it and stop just talking about it but do something to improve the results and reduce wastage. 65% doesn't sound to scary but when you translate it into advertising dollars spend each year across the globe to sell the products people don't need in a way people don't want, you get scared and makes you believe even stronger that
"If advertisers spent the same amount of money on improving their products as they do on advertising,” he said, “then they wouldn't have to advertise them.”
found at WARC
Picture by Joshua Davis
Tags: marketing, advertising, WARC
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