A new book shows that 37.3 percent of all advertising budgets in the United States are wasted. "What sticks!" (What sticks!), as the book is called, will not be published until next month, but the leading industry newspaper Advertising Age already considers it "arguably the most relevant research in the media and advertising sector since the publication of 'How Advertising Works' in 1990." The authors of this monumental tome are Rex Briggs, the experienced market researcher and founder of Marketing Evolution, and Greg Stuart, CEO of the Interactive Advertising Bureau. Over the course of five years, authors Rex Briggs and Greg Stuart crunched the numbers of the 36 largest advertisers by volume in the United States. In other words, they analyzed how advertising money of over one billion dollars flowed. They concentrated mainly on marketing giants such as Procter & Gamble, Johnson & Johnson and Kraft Foods, but took care to ensure a good mix of industries.
The book reveals surprising and even shocking facts. Author Greg Stuart, once an "agency guy" himself, says: "I always felt like a charlatan - I knew that we, not just me, but the whole agency, had no idea what we were actually doing with our clients' money".
"What sticks" also reveals that even well-considered plans by agencies often don't stand a chance with their clients' marketing departments. For example, the authors found that it was common practice among the three largest car manufacturers to base their budgets not on marketing plans, but on the budgets of their competitors. When the authors confronted the car manufacturers with their results, they simply said: "We don't believe anything the agencies tell us - just as we have no interest in this study
". This is balm for scolded agency souls. The authors see the blame for the marketing misery not mainly with the agencies, but with the marketers. Only two of the companies surveyed, Procter & Gamble and Cingular, had a precise definition of what "success" actually means in relation to a campaign. However, the authors identified the biggest problem in the personal sphere of the individual: the fear of failure and being fired.