Nielsen’s Annual Marketing Report Uncovers Brand's Top Priorities

Nielsen’s Annual Marketing Report Uncovers Only 26% of Global Marketers Are Confident in Their Audience Data

Nielsen, a global leader in audience insights, data and analytics, recently released its 2022 Annual Marketing Report.

For the first time, this report expanded to reach a global audience and as a result, revealed new key marketing priorities for the year ahead. The report also showcased areas that marketers have struggled with over the past two years due to consumers’ changing media habits.

Titled “Era of Alignment,” the report illustrates how marketers must gain confidence in their data to focus equally on brand building and customer acquisition, doing so through both upper-funnel and lower-funnel planning and execution.

The report surveys nearly 2,000 global marketers between December 2021 and January 2022 and revealed a digital dominance in how dollars are being spent, as well as exposed marketers’ lack of confidence in the data supporting big decisions.

“The level of insight provided by this report allows marketers on both a global and local scale, particularly here in Canada, to get an inside look at how best to allocate their budgets effectively and connect with consumers. Now more than ever marketers need to be continuously agile and adjust their strategies - Nielsen Canada and our most recent release of the Annual Marketing report highlights the importance of consistently evaluating and reevaluating the best methods to achieve the best results, in response to the changing times.” - Katherine Canario, Sales Director, Marketing Effectiveness for Nielsen

Highlights from the Annual Marketing Report.

• Advertising on search and social media is considered the most effective among North American marketers. Last year, more than half (54%) of North American marketers’ total advertising budget was spent on paid digital. Sixty percent of marketers in North America say search is the most effective paid channel, compared to the global average of 64%.
• Traditional Ad Spending Less Popular in North America Than Globally: Traditional media options like TV and radio are more aligned with new customer acquisition and brand building, yet compared with paid digital, North American marketers plan on spending less on these mass-reach options, highlighting a mismatch between their top business goals and marketing strategies.
• Paid Digital is Top Spend: In 2021, more than half (54%) of North American marketers’ total advertising budget was spent on paid digital.
• 1-Point Gain Equals $1M: In North America and around the world, Nielsen’s research shows that a 1-point gain in brand metrics would drive $1 million in sales for a brand that generates $100 million in annual sales.
• Brand awareness is marketers’ top objective. To reach this goal, brands need to leverage an array of channels to reach the widest audience. Nearly two-thirds (64%) of respondents stated that social media is the most effective paid channel with TikTok and Instagram dominating spend. Comparatively, TV and radio spend is significantly less with an aggregate increase of 53% across global marketers. Customer acquisition is their second objective, showing that marketers must focus efforts on the entire customer journey.
• Increased media fragmentation amplifies the need for holistic measurement. Marketers’ confidence in measuring ROI of the full-funnel is only 54%. Remove online and mobile video and confidence in measuring ROI across all other channels is under 50% globally, and while nearly half of marketers plan to increase their spending on podcasts, their confidence in measuring the ROI of that investment is 44%.
• It’s vital for marketers to use data to champion personalized marketing strategies. The increasing proliferation of channels produces an abundance of unique data sets. However, 36% of marketers still claim that data access, identity resolution, and deriving actionable insights from data is either extremely or very difficult. With the rise of connected TV (CTV) this presents new challenges to traditional targeting solutions. CTV is a growing focus for global marketers, with 51% planning to increase their over-the-top/CTV spending in the coming year. To wit, Americans streamed across subscription- and ad-supported platforms.

In a world of change, what's the future of marketing?

“Our work at Nielsen is to provide the most complete view of consumer behavior regardless of industry, and our longtime experience in measurement and comprehensive view of the media universe gives brands a 360-degree view that can’t be found anywhere else,” said Jamie Moldafsky, Chief Marketing and Communications Officer, Nielsen. “This research showcased that marketers want to put money into channels to deliver immediate ROI, however we also see that they must be agile in the year ahead and work across the entire marketing funnel to reinforce brand awareness and acquire more customers. With the upcoming elimination of third-party cookies, it’s understandable to see marketers prioritizing personalization and aligning their brand with causes their customers care about. Through our solutions – and this report – we’re continuing to help brands and marketers get actionable insights to make more informed, and quicker decisions.”

This is the fifth Annual Marketing Report produced by Nielsen. The report is fueled by survey responses of marketers manager-level and above, who manage marketing budgets north of $1 million, who work across a variety of industries (auto, financial services, FMCG, technology, health care, pharmaceuticals, travel, tourism, and retail), and whose focus pertains to media, technology, and measurement strategies.

Written with information from the Nielsen Global Annual Marketing Report.

Nielsen shapes the world’s media and content as a global leader in audience measurement, data and analytics. Through our understanding of people and their behaviors across all channels and platforms, we empower our clients with independent and actionable intelligence so they can connect and engage with their audiences—now and into the future.