‘Landmark’ programmatic investigation finds almost 50% of ad spend disappears before reaching publishers
A 15-month investigation into the programmatic supply chain has shown 49% of an ad buy is taken up by agency and platform fees and 15% which goes to an ‘unknown delta’, meaning half the costs don’t reach publishers.
The ‘world-first’ study has taken ‘far longer than could have been reasonably anticipated’ to complete due to a lack of support from agencies, but will have ‘global impact’ according to Australian Association of National Advertisers (AANA) CEO John Broome.
The industry waterfall: analysing advertiser spend [click to enlarge]
Noooo you can’t attack the tech stackerinos! Poor little ad bois!
You’re doing a heckin scare on the wittle bean DSPs uWu 🙁
Surely no one is surprised with this
Whoah, next they’re gonna tell us that video views are different on social.
Surely if they talked to any trader, they will tell you this over the last 5 years. This clearly doesn’t state the cost of business…
Ha! Unknown Delta!
We all know what that is, and its the only thing keeping agencies in business.
Why don’t pubs in Australia band together to move up the chain incrementally, like Trust X in the UK
Tune in next week when AANA reveal 30% of ads aren’t viewable.
PLUS bumper addition – Does anyone actually check ad fraud reporting?
Followed by major expose – ‘30 day cookie windows are meaningless’ reveals client who bothered to compare against their own sales data
I would love to see TV buying looked at with so much scrutiny and rigor!
And you are suprised? Smoke and Mirrors…….
When can we start referring to this as fraud?
This was not an investigation, it’s a bad example. So we should go back to rate cards and site serving to “trust us” publisher audiences? What a bunch of rubbish. Services cost money and technology improves outcomes. What world of business do you think we are in? Publishers had a good 10 years to properly share their customer base to advertisers and failed, so technology stepped in. Even at 50% spend reaching the publisher, the ads are 100’s of times more targeted (and valuable) than ever. Rubbish. Negotiate better media deals and pay good money for your tech. It’s what sells fucking products.
50% getting to the publisher? Seems like a pretty good deal!
Compare that to the $4 avocado you are buying at your local supermarket – The producer will be lucky to get 40c per avocado.
Distribution is expensive!
Perhaps the 2nd edition of this report will have a look at independent trading desks? I’m sure publishers would be much happier with that 51% from Tier 1s.