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viewpoints
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Clearing Up the Murky World of Programmatic

Billions are being spent every year (and rising) on programmatic media buying where sales are made in a bidding process driven by algorithms. In the past, studies have shown substantial waste in the ecosystem, hidden compensation within the supply chain, and lack of transparency and accountability among the plethora of players in the the programmatic media buying scheme.  A new study commissioned by the Association of National Advertisers will, for the first time, examine the waste and accountability factors through the entire path from the advertiser to the consumer.  It is my guess that substantial waste will be reconfirmed and that programmatic ROI is more imaginary than measureable.  The ANA's appointed combination of PwC, Kroll, and TAG Trustnet will dive deeper than ever before and follow the money from beginning to end.  Hopefully, the results will bring clarity and transparency to programmatic buying so advertisers can decide if the murky world of programmatic is worth the investment.

PricewaterhouseCoopers (PwC) estimates that more than 70% of an advertiser’s budget does not result in media that reaches the end consumers for programmatic purchases, when you take into account “ad fees, fraud, non-viewable impressions, non-brand-safe placements, and unknown allocations.”

Tags

entertainment & media, programmatic, media buying, fraud, transparency, accountability, pwc, ana, kroll, tag trustnet, roi, advertising

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