5 killer stats to start your week

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