This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
Welcome to Reed Smith's viewpoints — timely commentary from our lawyers on topics relevant to your business and wider industry. Browse to see the latest news and subscribe to receive updates on topics that matter to you, directly to your mailbox.
| 1 minute read

It's Time for Truth in Media Buying

Industry expert Nick Manning could not have said it better in a recent article in the Media Leader.  No one has yet to make any viable argument that justifies the waste and dilution of billions of dollars in the media buying ecosystem, particularly in digital and programmatic.  The lowest estimate reported in studies thus far is that 50% of media dollars are spent before an ad reaches a publisher.  But those studies have not taken into account the waste and dilution from the publishers to the consumer.  Some suggest that more than 80% is lost in programmatic before an ad reaches a consumer.  With bot fraud rampant, other pundits say as much as 95% is lost.  

A new study is underway by the Association of National Advertisers (ANA), conducted by PwC, TAG-TrustNet, and Kroll, that will follow the money from the brand to the consumer, identifying the flow of funds to the DSP's, SSP's, publishers, and the plethora of other thirds parties siphoning off brand dollars.  Perhaps then brands will see enough to take action and address the waste, measure effectiveness and preserve shareholder values.  Kudos to those in the supply chain that are participating in the study, working in partnership with brands to find solutions.  I suppose those who are not participating have excuses, but I've yet to hear one that is legitimate.  

Results of the ANA study, together with tools brands can use to address the waste and negative impact on ROI, are expected by the end of the year.

What is clear is that advertising will continue to lose effectiveness unless there is an industry-wide movement (led by advertisers) to concentrate on the fundamentals of advertising, starting with the delivery of audiences.


programmatic, brands, ssp, dsp, kroll, pwc, tag-trustnet, ana, advertising, entertainment & media, emerging technologies