5 killer stats to start your week

We arm you with all the stats you need to prepare for the coming week and help you understand the big industry trends.

Quantifying advertising’s business impact

On average, advertising creates a total profit return on investment over three years of £3.24 for every pound spent.
Within that, the research found that TV generated 71% of total profit ROI, ahead of print (18%), online video (4%), radio (3%), outdoor (3%) and online display (1%).

Source: Thinkbox, Ebiquity and Gain Theory

Christmas spending expected to fall

British shoppers could spend less on Christmas this year for the first time since 2012, due to a fall in real wages and continuing economic uncertainty.
There is expected to be a 0.1% dip in UK spending during the key shopping period of November and December.
High streets will take most of the pain, with physical stores sales predicted to drop 2.1%, while online sales will rise by 3.6%.

Source: Visa and IHS Markit

Marketers failing to understand the tech stack

Two-thirds of advertisers have only “some understanding” of the role of their tech stack.
Just 8% had a good understanding, 22% a little understanding and 3% admitted to no understanding.
Four in 10 admit their media technology is “ineffective”, with just 15% saying they are using it effectively and none saying they were “very effective”.

Source: ID Comms

Use of programmatic set to soar

Two-thirds of the global digital display ad market will be traded programmatically by 2019, up from 59% this year. In the UK that figure will rise from 77% to 90% over the same period.
The value of advertising sold programmatically is also set to rise, from $57.5bn in 2017 to $84.9bn in two years’ time, a growth rate of 21% annually.

Source: Zenith

Growth in marketing budgets stalls

Growth in marketing budgets has stalled in 2017, with spend hitting a plateau after three years of growth.
According to the survey of 353 marketing executives in the US and UK, budgets fell from 12.1% of company revenue in 2016 to 11.3% in 2017 – a return to 2015 levels.
CMOs are not confident of growth this year either. Just 15% say they expect a significant increase in 2018, while a third expect budgets to be cut or frozen.

Source: Gartner

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