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New research from adtech platform AdSapiens reveals senior marketers spend over a quarter (26%) of their entire marketing budget on A/B testing, highlighting a growing inefficiency problem in marketing.

The research also revealed that 6.3 days every month are dedicated to A/B testing, costing an additional $32,655 in salary every year. AdSapiens discovered that advertising campaigns are taking an average of five months from ideation to completion, and a team of 19 marketers.

The report by AdSapiens, the platform revolutionizing ad design, optimization, and tracking, polled over 400 senior marketers based in the US about their current strategies, tools, and perceptions around advertising, metrics, A/B testing, and AI. Overall, it found that AI is under-utilised and that marketers are suffering from an ‘efficiency illusion’, believing they’re delivering results but missing half of their KPIs, despite 86% of respondents saying they are aware of alternative testing methods.

Ian Liddicoat, CTO at AdSapiens, said: “With the implementation of AI in the advertising sector, it’s time marketers faced the fact that we’re spending too much time and money on processes that could be automated. AI testing and optimisation provides depth of insight, speed of delivery, improved cost, and overall success of the campaign, yet marketers are spending over a quarter of their budgets on less efficient strategies. AI provides the opportunity to add a greater degree of certainty around the effectiveness of creative elements of an advertising campaign.”

Senior marketers cite some impediments to integrating AI and reaping its benefits thereafter. Marketers detail that resource bandwidth (34%), a lack of business buy-in (32%), and gaps in expertise (32%) have slowed progress on innovating and investing.

AdSapiens CEO, Chris Allan, said: “Businesses are still getting their heads around the sudden, watershed changes AI can produce across all manner of industries, advertising included. Using the right AI platforms can dramatically cut resource and budget strains. Marketers need to be embracing that for their very survival.”

“Business buy-in is more of a challenge,” Allan continues. “Not all stakeholders understand the work of the marketing department nor the place of AI within it. By quantifying the minimum cost and time A/B testing consumes, it’s clear AI is primed to innovate practices, increase performance, and reduce cost and resource expenditure. Taking advantage of AI might require a leap of faith to begin with but the rewards are easily obtained.”

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