Report: Aussie advertisers wasted $54m on digital media campaigns last quarter

New Next&Co report shines a light on the ad wastage experienced by Australian brands between July and September

Nearly 40 per cent of digital media spend, or more than $54 million, was wasted by Australian brands pursuing advertising campaigns between July and September this year, a new report claims.

The latest quarterly Next & Co Digital Media Wastage Report found $54.3 million in media spend as wasted in Australia during the quarter. The figures are based on an audit of 67 brands across pharmaceutical, real estate, finance, retail, insurance and education sectors including ASX-listed and private companies. Media budgets in this group ranged from $500,000 to $27 million.

The data is derived from Next & Co’s media auditing tool, Prometheus, which originally found $3 billion is wasted across digital media channels annually. The company’s first report from April to June reported digital media wastage worth $123 million across 115 companies in Australia.

The Prometheus tool uses KPIs set by advertisers, such as leads, ROI, reach and customer conversions, to audit media activity by campaign as well as creative. Each is given a score out of 100 against each metric and the dollar figure of ad spend wastage calculated.

According to the figures, the retail sector was the worst for ad spend wastage at more than $15 million over the quarter. This was followed by real estate at $10.3 million, insurance at $8 million, pharmaceuticals at $4.8 million and education at $2.7 million.

Topping the list of the worst digital channels for wastage was Facebook ($25 million), followed by Google ($20m), Bing ($8m) and LinkedIn ($4 million).

Next&Co co-founder, John Vlasakakis, said the wastage problem highlighted an ongoing problem in the market locally and globally.

“Many brands are simply spending their digital advertising budgets in the wrong places and not harnessing the right platforms for their campaigns,” he said. “The answer is regular, independent media auditing. These audits allow companies to find the spend that is not attributed to a conversion, and then look for opportunities to scale their media spend in areas that are working.”

Credit: Next&Co

Don’t miss out on the wealth of insight and content provided by CMO A/NZ and sign up to our weekly CMO Digest newsletters and information services here.  

You can also follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page


Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

who wants to date me I am 9 years old and i am a boy

Jeremy Hawkins

Sink a sub gaming experience signals Subway's renewed brand push

Read more

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Blog Posts

Unboxing 101 - How savvy influencer engagement can build a brand

The humble unboxing video is a powerful tool. Correctly executed, it harnesses consumer fandom, viral authenticity and brand design magic to deliver a high-impact message to a tightly targeted cohort of consumers.

Gali Arnon

Chief marketing officer, Fiverr

​Power to the people

Purpose is the ultimate statement of intent for many organisations. Why are we here? What are we trying to achieve?

Rich Curtis

CEO, FutureBrand A/NZ

The playbook to develop strategic brand moats

Warren Buffet is an unlikely ally for marketers. But his belief businesses need strategic moats that increase their value in the market while acting as barriers to competitors can offer marketers a new playbook for brand building and driving growth.

Fabian Di Marco

Founder and managing director, Tzu & Co

Sign in