Marketers Need a Sharper Antenna for Programmatic Advertising
Mar 6, 2024
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Bill Duggan, Group EVP at the ANA, discusses the wastage of ad dollars in programmatic ad buying. Marketers could save $22 billion with more efficiency. Tips include reducing the number of websites used for advertising, balancing cost efficiency, and navigating information asymmetry in programmatic advertising.
Marketers could save $22 billion in programmatic ad buying efficiency gains by optimizing investments.
Scrutinizing ad placement on low-quality websites is essential for ensuring brand safety and effectiveness in programmatic advertising.
Deep dives
Efficiency Gains in Programmatic Ad Buying
Marketers have experienced wastage in programmatic ad spending, with the ANA Programmatic Media Supply Chain Transparency Study revealing an opportunity of $22 billion in efficiency gains. This study emphasized the challenge of data access, strategy, and information symmetry, highlighting the need for marketers to optimize their programmatic investments.
Impact of Made-for-Advertising Sites
A significant portion of programmatic ad spending is directed towards made-for-advertising websites, comprising 21% of all impressions and 15% of spending. These sites, known for clickbait content and low-quality traits, raise concerns about ad placement and effectiveness. The study advocates for marketers to scrutinize websites where ads appear to ensure brand safety and value.
Value of Inclusion Lists and Information Asymmetry
Emphasizing the importance of inclusion lists over exclusion lists in programmatic ad buying, the study underscores the need for marketers to curate trusted publisher domains. Information asymmetry, where sellers possess more inventory quality details than buyers, poses a challenge, prompting the use of log level data for granular insights and better decision-making in the programmatic landscape.
Bill Duggan, group EVP at the ANA, joins host Matthew Schwartz to discuss the results of the “ANA Programmatic Media Supply Chain Transparency Study.” The report, which was released in December 2023, shows that marketers incur an awful lot of waste in programmatic ad buying, and could save $22 billion in efficiency gains. Indeed, just 36 percent of every dollar invested by an advertiser that enters a DSP (digital signal processing) effectively reaches the targeted consumer. Duggan offers several tips to help marketers optimize their investments in programmatic media and provides the key questions that marketers need to ask sellers, so they don’t get burned.
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