Tom Triscari, CEO and founder of programmatic advisory firm Lemonade Projects, joins the podcast to discuss the economics of programmatic advertising. They explore topics such as radical transparency, the lemon market theory, fraud in programmatic advertising, MFA sites, and the contradictory behavior of advertisers.
Advertisers need to demand quality and transparency in programmatic advertising.
Changing buyer behavior requires advertisers to take ownership of their standards and make informed decisions.
Addressing issues like scraped content, invalid traffic, and domain spoofing is crucial to improve ad quality in programmatic advertising.
Deep dives
The Importance of Setting High Standards in Programmatic Advertising
In this podcast episode, the speaker emphasizes the need for advertisers to set high standards in programmatic advertising. The speaker argues that advertisers have the choice to demand quality and transparency or to settle for lower quality inventory. They highlight the importance of assessing probabilities and making informed decisions based on accurate data and insights. The speaker also mentions the $13 billion wasted annually on made-for-advertising websites and the need for advertisers to demand log file data from their partners to ensure transparency.
The Challenge of Changing Buyer Behavior in Programmatic Advertising
The podcast episode discusses the challenge of changing buyer behavior in programmatic advertising. While the recent ANA programmatic transparency report revealed the wasteful spending on MFA sites, the speaker questions whether advertisers will actually change their behavior. The conversation touches on the fear of missing out and the fear of finding out, which can hinder advertisers from implementing high standards and demanding quality in programmatic advertising. The speaker emphasizes the need for advertisers to take ownership of their standards and make informed decisions to improve the effectiveness of programmatic advertising.
The Need for Radical Transparency and Addressing Scraped Content
The podcast episode explores the concept of radical transparency in programmatic advertising and the issue of scraped content. The speaker mentions Lemonade Projects, an advisory firm, and highlights the lemon market theory in economics. They discuss the importance of addressing scraped content, AI-generated websites, and the lack of industry-defined standards for identifying made-for-advertising websites. The speaker suggests solutions such as implementing inclusion lists, verifying log data, and setting high standards to combat the prevalence of low-quality inventory in programmatic advertising.
Key Point 1: MFA, Invalid Traffic, and Domain Spoofing
The podcast episode discusses three key buckets of issues in the ad tech ecosystem: MFA, invalid traffic (bot fraud), and domain spoofing. MFA refers to humans clicking on clickbait articles that generate ad revenue. Invalid traffic involves non-human bots creating false impressions and clicks. Domain spoofing occurs when advertisers think they are buying ad space on reputable websites but end up on fraudulent domains. These issues highlight the need for advertisers to close the opportunities for fraud and improve ad quality standards.
Key Point 2: Impacts on Transparency and Buyer Behavior
The podcast also addresses the impact of recent research on YouTube's transparency issues. The research raises questions about the reliability of metrics and highlights the need for transparency in ad buying. This information can potentially change buyer behavior as advertisers may become more attentive and cautious. However, the podcast emphasizes the ongoing demand for cheap reach in programmatic advertising, which can impede significant behavioral changes among marketers.
Looking for unvarnished, sharp views on transparency, the lack thereof, defining ad quality and the industry’s new obsession with made-for-advertising websites? Then this is the episode for you, with guest Tom Triscari, CEO and founder of programmatic advisory firm Lemonade Projects.
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