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By Nick Manning
The majority of the ANA study is devoted to actions advertisers should take to make their Programmatic investments more effective and accountable, actions that Procurement personnel can implement right away. So what are they?
The new study from the US Association of National Advertisers (ANA) into the Programmatic media trading market shines a spotlight on a media eco-system where advertisers lose 64% of their investment in inefficiencies.
The report, based on real life data from 21 advertisers, shows that only 36% of the money being spent programmatically in the Open Web reaches an audience.
There can’t be any other industries where the people who are spending their budgets only get roughly one third of their money in value returned.
The new study investigates the inner workings of both the daisy-chain of the agency, ad tech and publisher eco-system and the real-world effectiveness of advertising exposure that follows.
This is the first such report of its kind, and it confirms that the result of high transaction costs and factors that limit the amount of advertising seen is that roughly $22 billion of value globally is being lost.
We now have a benchmark. Advertisers can now compare themselves to the 64% value loss and see how they perform.
More importantly, however, they can work out how to improve their performance whatever their position versus this benchmark.
The majority of the ANA study is devoted to actions advertisers should take to make their Programmatic investments more effective and accountable. The playbooks in the study provide an efficient guide through the various elements of Programmatic and how to eliminate inefficiencies.
These actions are ones that Procurement personnel can implement right away, beginning with a set of questions to ask of the partners involved in implementing activity.
The 15 questions include:
The full report runs to 125 pages and provides practical advice on how to ask these and other crucial questions, with helpful guidance on how to implement solutions.
The solutions are designed to help advertisers overall but many are the province of Procurement as they require a strong contractual framework, financial rigour and the ability to track and audit money and data.
Most advertisers should review their commercial relationships as a result of this study and tighten up their supply-chains accordingly.
One key recommendation in the study is that advertisers should equip themselves with the necessary resource to fully understand how the Programmatic market works. This may take the form of internal personnel or external consultants, depending on the level of expertise needed. The recent webinars that Media Marketing Compliance conducted on the subject of media transparency concluded that internal resource was often needed to account for the needs of different teams within the advertiser.
It should also be stressed that contractual rigour is needed and that this entails a strong culture of contract compliance. It is often the case that contracts go unmonitored in respect of the detail of programmatic execution, and this is a common gap in advertiser set-ups.
The ANA study is an important milestone in the journey to overall media transparency and is extremely valuable to advertisers who want to eliminate the inefficiencies of the current market.
About the author
Nick Manning is Founder at Encyclomedia International, Non-Exec Chairman, Media Marketing Compliance, commentator, investor, writer.