Brands are not thinking of the big picture when they come to measure the effectiveness of their marketing and advertising campaigns, a new report says.
A study by the IPA found short-termism is rife among brands when it comes to measurement - and it’s having a negative knock-on effect on awareness and sales.
Analysis of case studies found that the best-practice ratio for optimum campaigns is 60:40 long term brand-building versus short term sales activation. But few companies are meeting this benchmark, the IPA said.
Some 47 per cent of the average communications budget is now spent on short term activation strategies, up from 31 per cent in 2014, the report found.
Its author Les Binet said: “This latest research provides empirical evidence that our industry is focusing too much on the short term. The pendulum has swung too far in favour of brand activation, yet for truly effective advertising we must continue to invest more in long-term brand building.”