The reality , however , seems disconnected from this promise . Over the last 18 months , some of the largest and most influential advertisers in the world have spoken up about their concerns with digital advertising , calling the supply chain “ broken ” and pointing to high incidence of fraud and lack of brand safety . Subscription video on demand ( SVOD ) services are affecting the reach of traditional marketing mediums like TV and radio . The launch of GDPR in the European Union and related privacy challenges have added complexity to the collection and management of consumer data . Combine these with changing consumer preferences and zero-based budgeting and it ’ s clear that the job of the CMO has become a more delicate and dangerous catwalk .

The Nielsen CMO Report 2018 , the first of an annual series of CMO reports with a focus on global brand advertising , talks about how brand advertisers are navigating today ’ s marketing environment . The report makes it clear that we are in the midst of a slow but inevitable change an evolution , not a revolution . Marketers in the U . S . are leaning into the data , tools and capabilities available today . And while they don ’ t always deliver as hoped , their willingness to invest and experiment while incorporating the tried and true continues .

When asked to rank the perceived importance and effectiveness of digital media channels , marketers placed search and social channels at the top of the list . Television continues to hold its own as the highest ranked traditional media channel across perceived importance and effectiveness measures . That said , radio continues to lead all channels in terms of weekly reach in the U . S ., and a full 45 % of respondents thought radio to be an effective channel .

Digital ad spend has eclipsed traditional channels , and we expect that to continue . When forecasting their spend in the next 12 months , 82 % of respondents expect to increase their digital media spend as a percentage of their total advertising budget . By comparison , only 30 % of respondents plan to invest more in traditional media channels in the near term .

CMOs also reflected on a critical piece of the marketing mix , trade spend ( e . g ., in-store discounts , coupons ,

79 % 37 %

42 %

SOCIAL MEDIA

4 % special offers , etc .). They voiced a desire for a unified approach to trade and media strategy in order to correctly allocate spend ratios . That said , there was no unanimity in planned trade investment going forward : 44 % of respondents expect no change over the next 12 months , while 34 % say they will increase and 22 % say they will decrease their investment in trade promotions .

In terms of outcomes measurement , only one in four marketers reported high levels of confidence in their

THE IMPORTANCE OF DIGITAL MEDIA CHANNELS : HIGHEST RANKINGS

37 %

42 %

73 % 38 %

35 %

SEARCH

63 % 24 %

39 %

ONLINE VIDEO

59 % 28 %

31 %

EMAIL

EXTREMELY IMPORTANT

56 % 20 %

36 %

MOBILE VIDEO

VERY IMPORTANT

55 % 12 % 44 % 42 % 11 %

33 %

ONLINE DISPLAY

MOBILE DISPLAY

THE IMPORTANCE OF DIGITAL MEDIA CHANNELS : ALL RANKINGS

38 %

35 %

EXTREMELY IMPORTANT

24 %

39 %

28 %

31 %

20 % 36 %

12 % 42 %

26 %

8 % 18 %

OTT-TV / CONNECTED TV

VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT NOT AT ALL IMPORTANT

29 %

12 %

ONLINE DISPLAY

2 %

11 % 33 %

33 %

8 % 18 %

22 %

44 August 2018