Observed Signal · May 27, 2026 · Report Publication · Source: VideoWeek · Impact: 3/5 · Sentiment: Neutral
IPA Report: Scale Matters More Than Efficiency
An IPA report by marketing effectiveness expert Les Binet and Will Davis (Chief Data Officer and Co‑Owner, Medialab) argues that the primary driver of marketing effectiveness is budget scale relative to brand size rather than pure ROI efficiency. Based on a survey of 500 senior marketers and analysis of IPA Databank campaigns, the authors find ROI explains about 11% of profit variation while budget explains 89%. The report warns that pushes for efficiency, tight targeting, and narrow media mixes have reduced incremental profit and harmed long‑term growth. It recommends brands set Advertising-to-Sales ratios above category averages, increase Share of Voice above market share, use broader reach and more channels (including linear TV and online video), and avoid underinvestment driven by crude budget‑setting practices.
IPA research using IPA Databank and a 500‑marketer survey challenges prevailing efficiency-first budgeting and recommends scaling ad spend and broader media mixes—findings that can influence media planning, budget-setting and channel allocation across advertisers and agencies.
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Key Takeaways & Evidence Grounding
- IPA report authored by Les Binet and Will Davis (Medialab) published on 2026-05-27.
- Survey of 500 senior marketers found perceived drivers of effectiveness: budget 35%, media plan 30%, creative 35%.
- Analysis of IPA Databank shows ROI accounts for 11% of profit variation; budget accounts for 89%.
- IPA Databank figures: ROI up ~4% since Covid, while incremental profit fell ~11% in real terms.
- Survey findings: 28% of firms do not involve CFOs in budget setting; 76% do no financial modelling; 52% use ROI as primary budget metric.
Connected Companies & Entities
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Rethink Creative ROI: Measure Beyond Just Productivity
The article argues that marketing organizations increasingly track operational metrics (throughput, speed, cost) while overlooking broader creative value. It proposes expanding the definition of creative return to include three dimensions—revenue influence, brand equity acceleration, and cost avoidance—rather than relying solely on productivity indicators. The author recommends correlating asset-level performance, A/B testing results, project management data, digital asset management, campaign dashboards, and finance metrics to surface creative impact. Marketing operations leaders are identified as key to integrating disparate systems and shifting performance conversations from cost control to value creation.
Marketing Spend Is a Capital Allocation Decision
The article argues that marketing spend should be treated as a capital allocation decision rather than only optimizing proxy KPIs like ROAS or CPA. It explains common spend dynamics — revenue rises as spend increases, efficiency declines, and contribution profit rises then falls — and stresses the need to translate spend curves into marginal ROAS and contribution profit to inform strategy. The author presents three possible objectives (maximize revenue, maximize profit, or maximize revenue without harming the P&L) and gives illustrative spend thresholds. The piece warns that many teams either underinvest or overinvest because they rely on average metrics or platform-reported numbers and calls for closer alignment between marketing and finance with clearer, margin-focused data discussions.
Ad Awareness Regains Place in Effectiveness Planning
A new study by Thinkbox, Ebiquity, WPP Media, and Gain Theory, presented at the IPA Effectiveness Conference, analyzes 1,478 brands and 328,000 observations to argue that ad awareness is a valuable lead indicator in advertising effectiveness, not just an obsolete metric. The research finds that ad awareness accounts for 17% of brand consideration, of which only 6% is direct, while 11% works indirectly by improving brand perceptions. It also reports category-specific impacts, such as 69% in QSR delivery and 62% in lotteries. The author, Andrew Tindall, recommends that marketers reinstate ad awareness as a KPI, balancing it with attention and emotion in effectiveness planning.
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