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Perception Vs. Reality: The Power Of Data-Driven Decisions

With 54% of global marketers planning to cut spending in 2025, maximizing efficiency will be critical. The challenge is clear: deliver greater marketing impact with fewer resources. But navigating this goal is often hindered by misconceptions about the true effectiveness of various media channels.

That’s according to Nielsen, which says in a new insights piece, “Maximizing Your Marketing Effectiveness With Data-Driven Decision Making,” that many advertisers are shifting toward low-cost, performance-driven digital tactics like CTV, social media, influencer marketing, and search — at the expense of high-reach traditional channels like radio.

The problem? That approach may be misguided. Nielsen says new data shows a significant gap between marketers’ perceptions and the actual ROI of these channels. This misalignment can result in under-investment in brand-building strategies essential for sustainable growth.

Nielsen’s 2025 Annual Marketing Report shows a steady increase in digital ad spend, driven by perceived measurability and attribution capabilities. But it says ease of tracking doesn’t always correlate with effectiveness or return.

“Proprietary KPIs and lower CPMs can be misleading, and a channel’s ability to claim conversion credit doesn’t necessarily translate to real value,” Nielsen says. “This bias can lead to under-investment in traditional channels, like radio, which, despite being perceived as less effective, can deliver substantial ROI.”

The article continues: “Global Compass data provides a powerful counterpoint to marketer perceptions. While marketers rank radio last in perceived effectiveness, it actually boasts some of the highest ROI globally, just trailing social media. This suggests that marketers are missing out on a highly effective channel due to inaccurate perceptions.”

Similarly, Nielsen says, podcasts deliver ROI comparable to TV and digital display, yet remain underutilized.

This disconnect between perception and actual performance can result in inefficient media strategies and missed opportunities.

To close the gap, marketers must shift from perception-based planning to data-driven analysis — starting with audience understanding. That means knowing where an audience spends its time and what platforms it trusts.

Targeted media placement depends on knowing which channels resonate with your audience. For instance, U.S. radio reaches 27.4 million Black listeners weekly — comparable to connected TV reach. Black consumers are also twice as likely as others to try products promoted on local radio. This presents a powerful opportunity to build brand loyalty and drive sales within this demographic.

Recognizing these behavioral and cultural nuances is essential to crafting more effective marketing strategies.

Brand building and performance marketing aren’t opposing forces — they’re complementary, Nielsen says. Every quarter without advertising can lead to a 2% loss in future revenue, while a 1-point gain in brand equity can boost sales by 1%. A balanced strategy that supports both short-term gains and long-term growth is key.

Overemphasizing performance-driven digital tactics can result in insufficient investment in channels that strengthen brand equity and support long-term growth. This imbalance may weaken the brand over time and restrict future revenue opportunities. Rather than replacing traditional channels with digital ones, marketers should focus on expanding their digital presence while continuing to invest in high-reach, established platforms.

“With adequate data and methodology, traditional channels can be measurable drivers of ROI,” Nielsen says. “Audio, for example, can be difficult to measure due to relatively lower spend, but looking at the size of the budget, the quality of the inputs, and the granularity of the outlet can measure the impact of radio, streaming audio, and podcasts.”

First published by InsideRadio. Read original here