In 2018, P&G CMO Marc Pritchard announced that his company had reduced spending “with several big players” in the ad space, to the tune of US$200 million. Instead of damaging reach, however, the cuts helped P&G increase its reach by 10 percent.

The sentiment is echoed in new research from the Melbourne Business School (MBS) and Massachusetts Institute of Technology (MIT), which revealed a barrage of inefficiencies around adtech, particularly when it comes to third-party audience targeting.

The MBS and MIT team compared some of the most popular audience targeting segments and validating them against more accurate first-party data. “What we found was that the segments, on average, were between 11% and 87% accurate,” said MBS’s assistant professor and fellow for the Centre for Business Analytics Nico Neumann, who presented the research on stage at Mumbrella360 in Australia.