Negative ROI or ROI not being measured are some of the challenges reported.
AlixPartners surveyed 1,100 executives spread across six markets. Those polled either currently manage digital transformation for their business or have done so previously.
The study revealed that $50 billion invested in digital and trade spends have gone to waste for global consumer product companies. FMCG brands across household, beauty and food categories’ ad spend in 2018 was $242 billion. Digital had a share of $60 billion in this.
Additionally, over half of digital ad spend displayed either negative ROI or ROI not measured at all. In 2018, $518 billion was invested in trade spending, of which $19 billion was digital. Negative ROI was reported by $9 billion of the segment. The report predicts that the digital market for consumer products globally will hit $440 billion over the next five years.
[4 minute read]