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Nielsen report finds underspending in 50% of media plans jeopardizing maximum ROI

4 minute read | July 2022

Nielsen’s global ROI Report delivers insights and recommendations for advertisers, agencies and publishers to increase returns on investment in media plans

NEW YORK, July 6, 2022 – Nielsen (NYSE: NLSN) released its first-ever ROI Report, which identified gaps in marketers’ budgets, channels and media strategies that are compromising returns on investment (ROI) on media plans. The global report reveals data and delivers insights on what drives returns on ad spends, how to measure the returns, and how to improve on the metrics brands already have, with content unique to advertiser, agency, and publisher audiences.

According to the report, about half of marketers are not spending enough in a channel to get maximum ROI. While a poor ROI might cause brands to pull back on spending, Nielsen found that spend often needs to be higher to break through and drive returns. Nielsen’s “50-50-50 Gap” states that while 50% of media plans are underinvested by a median of 50%, ROI can be improved 50% with the ideal budget.

Beyond budgeting, the ROI Report delivers key insights and recommendations to deliver higher ROI across multiple marketing areas including:

“Nielsen’s 2022 ROI Report serves as a guide for all parties involved in ad spending—the brands, agencies and publishers. In a time when there are more channels than ever to reach desired audiences, it’s critical that insights on ROI are attainable and easy to understand,” said Imran Hirani, Vice President, Media & Advertiser Analytics, Nielsen. “Brands can’t afford to waste valuable ads on the wrong audiences. By investing wisely and having a balanced strategy of both upper-funnel and lower-funnel initiatives, brands can reach the right audiences and maximize their ROI.” 

This is the first ROI Report produced by Nielsen. The ROI Report findings were generated by Nielsen’s experience in a wide range of measurement methods including Marketing Mix Models, Brand Impact studies, client-sourced marketing plans and expenditure data, attribution studies, and Ad Ratings. In most cases, data were organized into normative databases or meta-analyses across a sample of studies to produce insights that are representative of Nielsen’s entire experience, providing marketers, agencies and media sellers a more complete view of media effectiveness compared to a single company drawing from its own experience.

Download Nielsen’s 2022 ROI Report to learn more.

About Nielsen

Nielsen shapes the world’s media and content as a global leader in audience measurement, data and analytics. Through our understanding of people and their behaviors across all channels and platforms, we empower our clients with independent and actionable intelligence so they can connect and engage with their audiences—now and into the future.

An S&P 500 company, Nielsen (NYSE: NLSN) operates around the world in more than 55 countries.  Learn more at www.nielsen.com or www.nielsen.com/investors and connect with us on social media.

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Nielsen
Landon Oakum
landon.oakum@nielsen.com