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BizTrends 2018

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Manufacturing Indaba 2018

Shock figures of ad broadcasting errors

According to Deloitte, recent tracking of radio advertising broadcast on South African stations showed alarming results; an average of 9% of all radio ads booked are not broadcast as scheduled. Based on FM's AdFocus estimated figure of R3 billion on radio advertising in 2008, this error equates to R270 million erosion of ad spend per annum.
"Through our research and market testing of this concept, it's become apparent to us that there are significant operational inefficiencies in radio and television broadcast where advertising campaigns are flighted incorrectly. The scope of errors which we verified were not aired at all, broadcast in the wrong time channel or flighted as scheduled but the wrong material was used," commented Audine Brooks, business leader for Deloitte's Advertising Broadcast Certification service.

In the last month, some of the findings show:
  • Client's radio campaign ran at a 24% error rate - resultant compensation claim was thirty fold the related certification fee
  • Another major advertiser's radio activity consistently results in an 8% error rate, damaging the reach and frequency intended by its marketing strategy
  • Another TV campaign ran at 5% error rate, R149k in value booked but not broadcast accurately.
Some clients are fortunate to receive clean reports of zero error, and therefore draw comfort in the knowledge that their ad campaigns are being broadcast accurately.

Ads must be monitored

Historically there have been limited mechanisms available to validate the actual broadcast of a campaign. This service equips marketers with the visibility of, and accountability for, their return on investment. It assists with early identification of broadcast errors and enables advertisers to claim for compensation from media owners, thus initiating compensation to take place within the context of a campaign. Such monitoring therefore highlights the significant opportunity cost being borne for reduced brand penetration due to incorrect broadcast.

"The company's role is to provide a unique and independent verification function, certifying the accuracy of the broadcast results. With our stamp of authenticity, the media owners are far more responsive when asked to provide compensation in spots or credit. Our interest in the solution arises from a compliance point of view, ensuring that media owners are fulfilling their contractual obligations with advertisers," continued Brooks.

“In this challenging economic climate and with this potential erosion of ad spend in mind, organisations are inevitably more risk averse around where they position their marketing investments. Advertisers are clearly concerned about limiting such erosion of their ad spend and are approaching us to monitor their ad activity, either recently broadcast, or with the imminent festive season consumer spending in mind. Such transparency ensures target audiences are reached and therefore optimises the effectiveness of each and every campaign booked," concluded Brooks.