Are You Wasting Your Digital Advertising Spend?

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Are You Wasting Your Digital Advertising Spend?

We live in the lavish comfort of a fully modernised lifestyle. Everywhere we go, there’s always an endless variety of choices that help us achieve our daily tasks and work more conveniently and efficiently. The reign of digital technology has pushed businesses to dive into the fishing sport of digital media advertising – competing against one another to offer their target consumers with ad baits that lead to instant sales and revenue.


However, as the flow of water across all digital platforms remains freely accessible to all, one might wonder… ‘How exactly can a business be certain that their ads are indeed cost-effective and not just washed ashore?’

Here are six of the biggest factors that lead to a large waste of digital media spending:

Digital ads that go unseen

In 2017,
AdParlor conducted a ‘deep dive’ audit of over 50 companies determining the effectiveness of their digital marketing campaigns as large advertisers in social media and display advertising.  The summary finding concluded that those 50 companies were wasting around 12-80% of their total social media budgets – with most companies wasting over 20-50% of their 2017 social media spend.

Users ignore unrelated ads

Digital users are not interested in seeing advertisements that contain zero relation to them or any of their other interests. Lack of relevance in ad placements and the limit of knowledge of the people managing the ads on all digital platforms has equated to a large amount of
wasted media spend.

AdParlor stated that a high 50-70 percentage of ad-set audiences overlap – which leads to mixed messaging in consumers that ultimately results to ad campaign failures and media budget inefficiencies.


Many advertisers fail to see the absolute power that various ad types can bring into their sales funnels. The biggest social media platform in the world being Facebook, where the use of specifically generated ads equate to valuable ROI for their advertisers.

On average, a Facebook ad costs as little as $5.99 per thousand impressions – with average CPC at $1.72, average CTR at 0.9%, and Average CPM at $7.92, making ad placements across their channel highly efficient and affordable.

In addition to this, Facebook lets you reach your target audience by age, gender, location, interests and many other factors. One of its most popular options being Local Awareness ads; which target local customers who are on their mobile devices and conversion ads which hone in on uses most likely to convert on your website.

Low CTRs result to misspent media

Click-through rates (CTR)
are defined as the number of clicks on an ad divided by the number of times the ad is shown, expressed as a percentage. These metrics are used to measure the success of an online advertising campaign. For example, if 10 people click on an ad out of 100 people who viewed it, the CTR would be 10%.

As SmartInsights pointed out, overall display ad click-through rates across all ad formats and placements is just at 0.05%. While this is referring to mostly banner ads across display networks, this translates to fewer than 5 clicks per 1,000 impressions. One way to get around this is to invest in high engagement channels like Facebook & Instagram while utlising the services of a highly experienced social media specialist.


Another issue for advertisers to consider when evaluating their online ad effectiveness through CTR, is viewability.  Over the course of time, ad blockers have increased greatly in popularity across all countries and demographics – accounting for 35% of ads in some countries. Again, utilising specific channels with native advertising can ensure your ads are seen by your audience.

Unattainable Return of Investment

Proxima revealed that a whopping 60% of all digital marketing spend is wasted on poor marketing performance. As a result, these budgets fail to deliver the desired Return On Investment (ROI) to its paying advertisers.

In order to avoid failure, you must first employ highly experienced people to manage the media campaign (like us here at Contevo 😉 ) and then learn how to effectively measure the success of all your digital marketing initiatives with comprehensive reporting and goal tracking. Many digital marketing channels have built-in metrics, with two of the biggest being Google and Facebook Ads. These marketing platforms provide advertisers with an in-depth look of their performances in real-time, giving an improved data of their channel-specific contents. However, having the experience and knowledge to be able to translate this data into actionable insights is vital.


Digital marketers see ad waste as drawbacks

eMarketer states that advertisers in North America and the U.K. both agree that fraud (58%), viewability (56%) and poorly targeted ads (46%) are the top 3 leading obstacles to programmatic advertising.

So how can a business effectively avoid these drawbacks? By utilising their digital ad spend on social media platforms that can deliver heavy consumer traffic and cost-efficient success. Think Facebook. With a whopping net estimate of $67.2 billion in digital ad revenue, how can advertisers turn things around?

Facebook sells. That’s a fact. This social media platform gives its advertisers with diverse options on how to sell their business, products and services. With consumer-specific target ad placements, plus a great team at your side to handle all of your key metrics and various marketing tactics, you can be sure to get the results your business needs for growth in no time.  

Misused platform opportunities

A huge chunk of expensive ad campaigns are put to waste each year because of their failure to utilise ads on the right and best suited platforms.  This is most especially true on mobile – which accounted to only 22% of all digital ad spend in the U.S. in 2016.

Wordstream concluded that 69% of digital media time is spent on mobile devices, and 82% of all smartphone users consult their phones while inside a store.  Appearing in mobile search ad results can also increase brand awareness by a total of 46%. This is why a clear strategy needs to be formulated by channel and by device, to ensure the media spend is maximised for ROI.

Furthermore, eMarketer forecasts that the share of global digital ad spending in mobile will get a total of $232.34 billion in 2019. This means that for the first time, one-third of ad dollars worldwide will go to mobile – proving that this channel is here to push digital ad spending to soaring new heights.



Here at Contevo, we are driven by one thing – ‘Continuous Evolution’. We aspire to not only service our clients’ needs, but also showcase their full growth and PPC potential. We help our clients design and execute their sales blueprint so that they can grow and scale their businesses using advanced market-leading technology.

With our PPC company by your side, you’re campaign performance will get the attention it deserves.

Some of our recent results.

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