Brands Will Waste 99.9% Of Banner Advertising Spend This Year
Brands must shift attention to RCS to avoid wasting a staggering $917.2 billion in digital media budget by 2028
Brands will waste 99.9% of digital advertising spend on digital banners, this is according to the findings of an independent report published by business messaging intelligence experts, Mobilesquared. This highlights the extremely poor return on investment achieved by digital banner advertising today—for every $1 million invested, just 0.1%, or $1,000 derives value for brands, resulting in $999,000 being wasted by brands.
Left unchecked, brands failing to divert budget to more impactful digital platforms, such as mobile operator-owned messaging platform RCS (Rich Communication Services), stand to waste a staggering $917.2 billion on digital banner advertising by 2028.
RCS is the new standard of messaging owned by global mobile operators around the world. Touted as SMS’ successor, RCS combines the best of two worlds; the reach, universality and targeting of messaging, with the richness and interactivity offered by existing messaging applications such as WhatsApp.
This, all available directly from mobile users’ native messaging app, providing a trusted environment that turns messaging into an interactive, actionable, feature-rich and safe experience. What’s more, RCS is specifically designed for B2C engagement, making it an ideal communication channel for brands to drive purchases, cross-sell and upsell, solve customer queries, and maintain a two-way dialogue with their audience.
“The days of allocating billions of dollars to digital banner advertising must surely now be over,” said Kerstin Trikalitis, CEO and Co-Founder, Out There Media. “Committing so much money to such an ineffective digital channel, in view of changing consumer behavior, could serve to damage brand reputation, not enhance it. Brands need a compelling alternative to focus future investments – RCS is this alternative, and brands are starting to react.”