New York, NY – As the global marketing landscape shifts, data-driven decision-making is becoming crucial for marketers aiming to maximize their advertising effectiveness. According to Nielsen’s 2025 Annual Marketing Report, published in June 2025, 54% of global marketers plan to reduce spending, making ad spend efficiency vital for maintaining impact at a low cost.
The report highlights a growing tendency among advertisers to favor digital channels due to their perceived measurability and cost-effectiveness. Channels such as connected TV (CTV), social media, influencer marketing, and search are gaining traction, while traditional, broad-reach media like radio are seeing reduced investments. However, Nielsen’s data brings to light a significant misalignment between perceived effectiveness and actual performance in terms of return on investment (ROI).
Digital media channels, although easily measurable, do not always guarantee higher ROI. Proprietary KPIs and lower cost-per-thousand impressions (CPMs) can be misleading, and a channel’s ability to claim conversion credit doesn’t necessarily equate to real value. This misperception often results in underinvestment in channels like radio, which despite being ranked low in perceived effectiveness, delivers some of the highest ROIs globally, second only to social media.
Moreover, the report underscores the undervaluation of podcasts, which show strong ROI comparable to TV and digital displays. These findings underscore the danger of relying solely on perceptions rather than objective data when planning media strategies.
To address these discrepancies, marketers are encouraged to focus on understanding their audiences, pinpointing where and how they consume media. For instance, in the U.S., radio reaches 27.4 million Black listeners—comparable to the reach of connected TV. This demographic is twice as likely to try products advertised on local radio stations, presenting significant opportunities for engagement and brand loyalty.
Defining clear marketing objectives is also crucial. While 50% of marketers prioritize revenue growth, only 45% focus on brand awareness. The report stresses that brand building and performance marketing should coexist, as neglecting brand advertising can lead to a 2% quarterly revenue loss, and enhancing brand metrics can boost sales by 1%.
The strategic recommendation is to scale digital investments without forsaking traditional platforms. Traditional channels, when measured with the right methodology, can prove to be valuable ROI drivers. For example, audio channels, including radio and streaming, can be challenging to measure but offer immense potential when matched with appropriate budget sizes and high-quality inputs.
Ultimately, the report advocates for a balanced media mix that leverages both data-driven insights and proven high-reach platforms like radio. By doing so, marketers can ensure their investments lead to tangible results rather than relying on perceived effectiveness.
For further insights and a detailed understanding of global marketing strategies, readers are encouraged to explore Nielsen’s 2025 Annual Marketing Report.
