Up to £25bn of Global Digital Marketing Budgets Being Wasted Yearly

LONDON, August 4, 2015 /PRNewswire/ --

- Proxima's Digital Disconnect research reveals companies are wasting up to 60% of annual investment - 

Research by procurement services provider Proxima finds that spend on digital marketing in 2015 is failing to deliver the value companies should expect. With 50% of total advertising budgets in the UK (approx. £7.9bn), and around 30% in the US (approx. £32.9bn) being spent on digital marketing, poor commercial management means brand and commercial content is not reaching the right audience.

Procurement services firm Proxima found that up to 60% of global digital spend is wasted every single year. With up to 35% of all web activity being fraudulent or artificial^[1] and 54% of online ads not even being seen by a human^[2], it is extremely difficult to correlate ROI back to direct commercial outcomes.

Companies need to understand how to better buy digital marketing tools and channels, how to work with third party media networks and ultimately manage the digital marketing budget better. The involvement of procurement can help marketing leaders highlight the effectiveness (ROI) for each channel and component of digital marketing investment.

John Butcher, Marketing Services Director, Proxima, comments, "Achieving better control of digital marketing investment requires transparency across the entire spectrum of digital expenditure. For example spend on direct-to-customer acquisition channels has relatively clear ROI measures, as there's no intermediary intervention. However, as the channel map moves from acquisition to engagement/retention, the number of intermediaries grows and ROI measurement becomes opaque.

"This opacity is resulting in ineffective digital marketing spend, fraud and wastage. Aligning agency and client relationship expectations from the start can help avoid any future problems. This is where good procurement, acting as the 'marriage counsellor' between client and agency, can make a difference between a successful and a bad relationship."

About Proxima 

Proxima, a leading global procurement services provider, helps companies align third-party costs with corporate aims.

Catalytics^®, our unique approach to procurement, offers a profoundly different way to manage your suppliers, one which is impossible to replicate in-house. Through our unique managed service, we ensure your suppliers are aligned with your corporate aims, your money is spent in the right way and that your business performance is materially improved.

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1. The Association for National Advertisers (USA)

2. The Interactive Advertising Bureau (UK)