Marketers plan study to shed light on murky automated ad buying activity
The Association of National Advertisers is looking for Consultants to help them better understand where marketers’ money ends up during the automated digital ad buying process, revisiting an issue that has plagued the market. industry for most of a decade.
A lack of transparency in the automated purchasing of digital advertising, an increasingly complex process that requires the participation of a number of advertising, media and technology providers, costs advertisers billions of dollars in waste and makes it difficult for them to plan their investments, said Bob Liodice. , director general of the ANA.
The ANA’s efforts echo a push that began more than five years ago to address concerns from advertisers as they began to ramp up their investments in data and technology to target digital ads to consumers. Fears of unethical business practices led to an ANA investigation that ultimately revealed that undisclosed discounts for agencies and other non-transparent practices were ubiquitous in the United States.
In 2018, federal prosecutors opened their own similar investigation. The Journal could not determine the status of this probe.
These issues still haunt the digital advertising process, which has only become more complex with the changes in the way ads are targeted and tracked and with the proliferation of digital media and connected TV, according to the request document. ANA proposal for a consultancy firm.
Programmatic ad spend, including on video and digital ads, is expected to exceed $ 81 billion in the United States in 2021, an increase from $ 66 billion in 2020, according to research firm eMarketer.
While some of marketers’ spending on automated open web ad buying clearly reaches agencies, ad technology providers, and digital publishers, advertisers cannot explain the final destination of about 15% of the money. , according to a study cited in the ANA. document.
“Marketers have become very accustomed to just execute and execute without the material understanding of the nature and makeup of their investments in this supply chain,” Liodice said. “We need to know more.”
Unlike the last survey, the new analysis will be less about pursuing allegedly harmful behavior and more about better understanding the flow of dollars, he said.
“Marketers have become very accustomed to just execute and execute without the material understanding of the nature and makeup of their investments in this supply chain.
“We didn’t necessarily hear rumors that there was some form of misappropriation,” Liodice said. “We’re saying the way the ecosystem was built isn’t optimal for marketers to make decisions. We need that higher level of understanding to see if we can get greater productivity from the ecosystem. “
The new survey will aim to take a close look at not only the processes and businesses that support open web commerce, such as independent ad technology companies, but also digital video and social media companies with their own digital properties and operations. , said the ANA.
It aims to build on previous studies that sought to track dollars as they moved from marketers to publishers by also looking at what happens after publishers get involved, according to the ANA.
The ANA said it expects the study to take about a year. He hasn’t revealed how much he plans to pay a consulting firm or multiple companies, but said he expects it won’t be cheap. The group spent millions when they hired K2 and Ebiquity in 2015 to conduct the previous investigation and compile the resulting report, he said.
The ANA Request for Proposal document states that responses are expected in early June and that one or more winners will begin fieldwork this summer.
Write to Alexandra Bruell at [email protected]
Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8