Up to 60 per cent of digital marketing budgets wasted

Up to 60 per cent of global digital marketing investment is being wasted due to fraudulent or artificial web activity and more than half of online ads never being seen, according to research by procurement services provider Proxima.

Proxima’s study found that spend on digital marketing, which makes up about half of total advertising budgets in the UK, including SEO, mobile apps and video-on-demand is not delivering the value expected.

“Poor commercial management means brand and commercial content is not reaching the right audience,” Proxima said in a statement.

“With up to 35 per cent of all web activity being fraudulent or artificial and 54 per cent of online ads not even being seen by a human, there are vast contrasts in spend effectiveness and a lack of transparency,” it added.

John Butcher, Proxima’s marketing services director, said that a lack of transparency in digital investment is starting to detract from the control marketers have on their digital spend, and that in the worst case, just 40 per cent of digital investment is reaching its target.

He continued: “There are several factors causing a disconnect between digital activity and commercial outcomes: fear vs rational thought as a driver for action; a generational gap within teams; measuring inputs vs true business outcomes; and the gap between what is known and what is unknown in digital marketing. 

“All of these factors combined create a lack of transparency and consequently, a lack of control over this significant area of business spend.”