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Understanding Misaligned Ad Spend in Digital Marketing

Contextual Targeting / April 4, 2023

It is no secret that advertisers have been evolving their strategies to feature more and more digital campaigns. In 2021, advertisers across the globe spent an estimated $521.02 billion on digital advertising alone, and this number is expected to increase for years to come. While this number is impressive, it is disheartening to know that a large portion of that ends up unwisely used on misaligned targets.

The majority of all digital advertising is not viewed at all. In fact, only 9% of all ads are viewed for more than 1 second. Many brands waste their investment by targeting the wrong audiences, overbidding in campaigns, and failing to drive meaningful actions. While misaligned ad spend is a real problem for marketers, brands can still be proactive to increase the effectiveness of their aids.

In order to eliminate misaligned spend in advertising, we first need to understand the potential root causes. Below are the four most common sources of wasted ad spend:

  1. Poor Messaging – Inauthentic, offensive, or unappealing marketing messages can result in unsuccessful campaigns that are not a great use of your ad budget.
  2. Targeting Mistakes – If you make any incorrect assumptions about your audience during the targeting process or targeting too broad of an audience can result in viewers ignoring your ad and therefore not putting your ad dollars to work.
  3. Ad-Blocking – Consumers are beginning to have more control in their ad exposure options and now have the option to block certain ads, adding even more importance to accurate targeting to ensure your audience is interested in what you brand has to offer.
  4. Wrong Product – Google offers a variety of advertising tools to get your message out there. However, not all tools are best suited for your campaign goals. Without a full understand of the strengths and weaknesses of each product, you could end up wasting your budget on an unsuccessful strategy.

When you eliminate misaligned ad spend, you maximize your investment and make smarter choices about your campaign strategy overall. Misaligned ad spend is a serious problem in the advertising world and it take the right strategies, tools, and partners to avoid it. Read our previous blog post featuring 5 ways to eliminate misaligned ad spend 

VuePlanner helps brands and marketers invest their advertising budgets in contextually relevant, brand suitable, and effective ways that bring results and eliminate misaligned ad spend. We help our client maximize their campaigns with the power of YouTube. Get in touch with our team today to learn how we can help you to avoid misused ad spend.