The efficiency illusion

Despite dedicating an average of 5 months and 19 people to create a single advertising campaign, nearly half (48%) of all campaigns fail to meet their KPIs. Surprisingly, 92% of marketers remain satisfied with their creative advertising process efficiency, revealing an "efficiency illusion" within the industry.

Vanity vs. value

The report sheds light on the widespread use of vanity metrics with marketers employing a staggering 189 different effectiveness metrics, such as shares and click-through rates (CTR). Despite 90% of marketers claiming to obtain the most actionable insights possible, a mere 12% take immediate action based on these metrics. This disparity implies that vanity metrics may fuel a false sense of efficiency within marketing, while true value metrics are being neglected.

A/B to AI

Brands allocate over 26% of their entire marketing budget to A/B testing, spending an average of 6 days per month on this process, equating to $33,000 per year in addition to the quarter of budgets already invested. Although 86% of marketers are aware of alternatives, factors such as resource bandwidth and lack of expertise hinder adoption, despite the ability of AI to streamline much of the process.

AI in advertising

The report reveals that while 97% of marketers want to invest more in AI, 53% still view it as a "nice to have" rather than a critical component of future strategies. Additionally, 30% of marketers still see AI as a threat to their careers. 

This research has been well-received by industry experts, who praise its insights into the "efficiency illusion" that has long impacted the advertising sector.  Tony Miller, Chair of the Data and Marketing Association, noted: “I’m excited about this report because it does just that - it provides the tools marketers can use today to get true value from AI to transform the LTV of campaigns, shift the narrative away from vanity metrics into metrics that matter, and take their rightful seat in the boardroom.”

We are now at the convergence of advertising and technology in its most powerful form. The current innovation within our sector will change how organizations and people perceive the power of advertising for years to come.

End-to-end AI tools like AdSapiens are becoming essential for marketers, enabling campaign management with machine learning, ensuring campaigns stay on-brief and on-brand while removing guesswork and optimizing in real-time. By adopting AI-powered solutions, marketers can unlock the true potential of their advertising efforts. 

To learn more about AdSapiens, visit www.adsapiens.com.