CMO’s planning to increase digital ad budgets: Stupid is as stupid does
Despite the overall decline, two-thirds of CMOs plan to increase investment in digital advertising, while traditional media faces budget losses. The shift to digital away from traditional media reflects changing media consumption habits of target audiences to focus on Millennial’s and ignore Boomers. Stupidity at its peak!
Thinking simply has been beaten out of marketers. First it was “you have to be on social media” because we were promised that social media would be the magic carpet on which our legions of brand advocates would go to spread the word about the marvelousness of our brands, and would free us from the terrible, wasteful expense of advertising. It has done nothing of the sort. In fact, it is often the exact opposite. Social media is usually where people go to scream about the mistreatment they get at the hands of companies. And where companies go to beg forgiveness.
Now it’s online advertising because of Millennial’s who are using ad blockers to stay away from ads even though the Wall Street Journal that reported on a study by ComScore, which found that 54% of display ads paid for by advertisers were never seen by a live human being .
10 facts, direct from the real world:
1ne: E-commerce in 2014 accounted for 6.5 percent of total retail sales.
2wo: 96% of video viewing is currently done on a television. 4% is done on a web device.
3hree: In Europe and the US, people would not care if 92% of brands disappeared.
4our: The rate of engagement among a brand’s fans with a Facebook post is 7 in 10,000. For Twitter it is 3 in 10,000.
5ive: Fewer than one standard banner ad in a thousand is clicked on.
6ix: Over half the display ads paid for by marketers are unviewable.
7even: Less than 1% of retail buying is done on a mobile device.
8ight: Only 44% of traffic on the web is human.
9ine: One bot-net can generate 1 billion fraudulent digital ad impressions a day.
10en: Half of all U.S online advertising — $10 billion a year — may be lost to fraud.
Consumers have shown no interest in interacting with advertising. Click through rates on display ads continue to drop and are now below one in a thousand. Every attempt at interactive TV has been a dismal failure.
If your company is spending money on online advertising, you are almost certainly being robbed.
Google reported that 56% of online display ads that are paid for by advertisers are never seen by a live human being. (And remember, Google is one of the world’s largest sellers of online display ads.)
Recently The New York Times ran a story claiming that 57% of online video ads are never seen. CNET reported on a study by research firm Incapsula that found only 38% of traffic on the web is human.
Kraft announced that it was rejecting 75–85% of the online ad impressions it was being offered because they were “fraudulent , unsafe, non-viewable or unknown.”
But, hey, let’s throw more money at it because that’s where Millennial’s are! This is stupidity at its height. The reason there is so much bad marketing is because there are so many bad CMO’s.
Originally published at www.newmediaandmarketing.com on November 18, 2017.