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Nielsen report finds most media campaigns are underfunded

Share of global ad campaigns that underspend, by category
Data: Nielsen; Chart: Axios Visuals

More than half of all digital video and display ad campaigns are being underfunded, according to Nielsen's first-ever ROI report.

Why it matters: Just about every advertiser worries that spending too much decreases ROI, but Nielsen is arguing the opposite is true.

By the numbers: In totality, Nielsen estimates that half of all media plans had too little investment to achieve maximum ROI.

  • Only 25% had an optimal level of investment, while 25% were overinvested.
  • For those that are overinvested, Nielsen found that ROI would only grow about 4%, while those that were underinvested could grow their ROI by 50%.

The bottom line: "Brands should focus on finding the right balance versus cutting spend because they may not actually be spending enough in the right channels to cut through the noise and drive real impact in the first place," the report said.

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