The Media Leader Podcast
Social media gets a lot of buzz and an increasingly large slice of media budgets. But is that spend optimal compared with other media channels?
In an article for The Media Leader last week, EssenceMediacom’ chief strategy officer Richard Kirk revealed new research that suggests brands are spending three times as much on paid social than is most efficient.
Kirk and Olga Zaitseva, EssenceMediacom’s head of media science and modelling, join Jack Benjamin to unpack the findings.
According to the pair, paid social receives more attention from marketers than is strictly necessary, and if AV budgets were increased, campaign effectiveness would likely improve.
“We’re starting to see multiple pieces of research all pointing in quite a specific direction,” says Kirk. “And I would hope that those things combined start to lend real credence to this idea that maybe the industry has gone too far in one direction and needs to correct.”
Listen now by hitting the play button or use the appropriate entry point into Spotify, Apple or Google Podcasts:
Highlights
1:09: How surprising are EssenceMediacom’s findings?
5:00: Reasons brands are overspending on social media
18:46: Caveats: different results for SMBs, production budgets
23:14: AV channels are underinvested. A look at other media channels
30:20: How research should be communicated to CMOs and CFOs
Related articles
Brands could be spending three times too much on social. You read that right
Advertising generates profit, but not all media channels are equal
Thinkbox’s Media Mix Navigator tool, which uses the same data as the EssenceMediacom study, can be accessed for free here. It provides econometric data for 2021-2023 from 141 brands across 14 product categories and 10 media channels, enabling advertisers to explore the impact of budget allocations on revenue and return on investment.
Recent episodes
Stories that mattered this week: Google’s adtech trial, Spectator sale, EssenceMediacom changes
How keyword-blocking still harms publishers — with Mantis’ Terry Hornsby
AMA: Ask media experts anything!
