Digital ad waste is costing brands dearly, says HUL’s Tejas Apte

Goa: As digital media cements its dominance in brand strategy, so too do concerns over its integrity, transparency, and return on investment. 

Amid the drive towards more intelligent marketing, Tejas Apte, Head of Media and Digital Marketing at Hindustan Unilever (HUL), has called attention to the growing problem of waste in digital media spends, warning that in some cases, up to 30% or more of investment may be lost to fraud, bots, or misleading metrics.

Speaking at Goafest 2025, Apte laid bare the structural weaknesses plaguing the digital advertising ecosystem. He pointed out that despite growing awareness, inefficiencies remain widespread and costly.

“There are credible audit reports suggesting that as much as 25–30% of media investment is wasted, either because ads are served to bots or simply not seen by real people. That’s a substantial erosion of value, especially in a medium where marketers are increasingly shifting budgets.” Apte stated.

He added that in the case of influencer marketing, the problem is often worse. “There are instances where influencers are buying phone numbers or fake followers. In such cases, up to 75–80% of engagements may have no actual impact on business,” he noted.

The digital gap between promise and performance

Apte’s concern was not simply about wastage but about the long-term health of the digital advertising ecosystem. Unlike legacy platforms such as television or print, where ads are physically delivered and consumed, digital offers no such certainty.

“If a digital ad is served to a non-human or is not viewable, it will have no tangible impact on the business. That undermines the medium’s credibility,” he said. He also pointed to the growing dominance of ad-funded models in digital media, noting that in contrast to legacy media’s blend of subscription and advertising revenues, most digital platforms rely heavily on advertising alone. 

“This makes cleaning up the ecosystem even more urgent. If digital fails to deliver growth, marketers will move their money elsewhere. It’s that simple,” Apte said. 

Co-creation over confrontation

What makes the media charter particularly effective, Apte believes, is its collaborative nature. “It wasn’t created in a vacuum. We work with Google, Meta, GroupM, Dentsu, IPG, Madison and others. This means everyone - advertisers, agencies, and publishers - has skin in the game,” he said.

He explained that the charter helps align expectations across the ecosystem. “Advertisers now know what data they should ask for. Publishers better understand what metrics advertisers really value. It raised the floor across the board.”

Apte was also clear that collaboration with media agencies remains central to HUL’s approach. “We’ve worked with GroupM for nearly three decades. The level of trust and access to internal data that exists in long-term partnerships is invaluable,” he said.

Agencies under pressure to evolve

However, Apte also acknowledged that the service model offered by agencies is under pressure due to automation and AI. “We are now pushing agencies to show us what ‘future-fit’ looks like. Technology is advancing rapidly. If AI can generate content in seconds, what role does the agency play next?” he asked.

He clarified that in-housing is not about eliminating agencies but rather redefining their function. “Agencies still play a critical role in strategy, brand personality, and creative ideas. But they will need to move away from routine execution and towards business impact and innovation.”

Apte added that creative brilliance will continue to come from human-led agencies. “Even if AI can generate a campaign asset, the big idea, the one that holds the brand together, will still come from creative talent.”

Measurement must move from input to outcome

A key theme that emerged during the discussion was the industry’s ongoing fixation with input metrics like click-through rates. Apte cautioned against equating clicks with conversions.

“Click-through rates can be useful, but they are input metrics. If someone clicks but doesn’t buy or engage further, what does that tell us? We need to move towards business metrics - actual outcomes that reflect growth,” he said.

Looking ahead, Apte suggested that the media charter’s success will be measured by broader adoption, especially among smaller advertisers, and a visible reduction in ad fraud and brand safety violations.

“If we see fewer fraudulent impressions and more platforms adopting safer practices, that’s real progress,” he said. “The long-term vision is clear: create a digital media ecosystem that is clean, accountable, and built for sustainable growth.”

In an era where digital media is expected to deliver precision, personalisation, and performance, Apte’s message was clear: until the system is cleaned up, the promise of digital will remain only partially fulfilled.