Today's marketers are facing a paradox: We have better intelligence and tools for driving growth than ever before. Data-driven digital marketing, programmatic and audience buying are proven to be delivering results. But if return on investment [ROI] is going up, why are sales in decline?
There are some simple causes and effects: Media inflation continues to increase across all channels, while reach has declined for most every channel and publisher. Rising costs combined with declining reach drives up Cost-Per-Point [CPP], which means creative needs to be exponentially more effective to deliver the same results (and that's before attenuation of media attention is factored in). In most cases, even the best creative cannot offset the decline in efficiency. It's just math. And as the math suggests, in most cases we'd expect to see a decline in payback. Yet most channel-specific measurements show a positive ROI. Why?
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