Measurement Issues Hurting Media Companies: Survey

advertising, smart cities, technology
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When ad campaigns fall short of meeting goals, advertisers say they’re more likely to penalize media companies than try different forms of measurement, according to a new survey by Advertiser Perceptions.

The results mean that it’s in the interest of media companies to push for new, more accurate systems at a time when their clients want to measure sales and brand lift, but tend to settle for guarantees on reach and frequency, audience delivery and completed views. 

In the survey 58% of advertisers said they reduce their investment with a media partner when a campaign fails to meet its objectives, 55% said they ask for make goods, 44% said they stop advertising with that vendor and 41% said they negotiate a lower rate.

Just 34% said they try new measurement solutions when campaigns fall short.

While those rules apply to most forms of video ads, Google and Facebook get to play by different rules. In the survey, 86% of advertisers said they require or request a pre-approved measurement tool before including a media outlet in a campaign. 36% said they don’t require that from Google and even fewer demand that from Facebook, YouTube or Amazon.

Advertisers expect measuring and optimizing campaigns to become even more difficult as cookies go away as a way of identifying consumers, the survey found.

“Advertising clearly needs a reset on measurement, but a lot of bold talk isn’t translating to transformative actions,” said Lauren Fisher, VP for business intelligence at Advertiser Perceptions. “The real change can only happen when advertisers revamp their organizational incentives to reward people for driving brand and sales lift.”

In the survey 200 people involved in making advertising decisions were interviewed from July 6 to July 14. 

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.