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The Marketing Architects

The Insane Waste Behind Online Advertising

May 21, 2024
Discover the shocking truth about online ad fraud and the massive wastage of marketing budgets in the digital realm. Unpack the dark side of programmatic media buying, delve into the complexities of MFA sites, and learn about the various types of ad fraud plaguing the industry. Explore solutions for preventing wasted ad spend and combating fraudulent activities, all while uncovering Minnesota's quirky laws for a touch of humor.
25:48

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Quick takeaways

  • Programmatic media buying leads to high waste in online advertising transactions, with 25% of programmatic ad dollars being wasted, emphasizing the need for transparency and detailed reporting.
  • Made for Advertising (MFA) sites pose challenges due to low-quality content and high ad-to-content ratio, requiring the use of ad network management tools and third-party verification services to maintain brand safety and combat fraudulent activities.

Deep dives

Programmatic Media Buying Challenges and Solutions

Programmatic media buying presents challenges with significant waste, where 70 to 90% of online advertising transactions are programmatic, but 25% of programmatic ad dollars are wasted. This results in over $130 billion being wasted, with ads from a campaign appearing on over 40,000 websites. Transparency and detailed reporting are crucial to combat such waste, ensuring ads reach real audiences and monitoring fee structures.

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