Cannes Lions 2024 Series: Enhancing Programmatic Transparency
In the rapidly evolving landscape of marketing and procurement, programmatic transparency has emerged as a cornerstone for effective strategy and execution. The discussion at the ANA TAG Trustnet event at Cannes Lions 2024 highlighted critical advancements as well as ongoing challenges in this domain. For marketers and procurement professionals, understanding these dynamics is essential to maximizing the efficiency and impact of their ad spends.
Programmatic Transparency: A Closer Look
The session at the ANA Trustnet event underscored the significance of programmatic transparency in contemporary marketing. The ANA TAG trustnet programmatic transparency report, released in the spring of 2024 was a focal point of the discussion and revealed that an astounding 15% of all programmatic ad spend previously went to non-productive advertising or arbitrage sites. This inefficiency translated into a $22 billion market opportunity for marketers to reclaim and reinvest more effectively. The findings emphasized the necessity for marketers to demand detailed log-level data (LLD) from their partners to uncover inefficiencies and enhance transparency across the supply chain.
Programmatic advertising, which automates the buying and selling of online advertising space, has grown rapidly due to its efficiency and scalability. However, with this growth has come increased complexity and opacity. Marketers often find it challenging to track where their ad dollars are going, which can result in significant portions of their budgets being wasted on ineffective or fraudulent placements. The ANA TAG Trustnet initiative aims to address these issues by providing clear, actionable insights that help marketers optimize their ad spend.
One of the most startling revelations from the programmatic transparency report was the sheer number of domains on which an average campaign’s ads would appear. Initially, campaigns were found to run on an average of 44,000 domains, a number that has since been reduced to 23,000. While this is a significant improvement, it still highlights the complexity and potential inefficiency of the current programmatic ecosystem. Reducing the number of domains helps ensure that ads are more likely to appear on relevant, high-quality sites, thereby improving overall campaign effectiveness.
Real-Time Actionable Intelligence
The introduction of a quarterly benchmark report by the ANA represents a significant stride towards continuous improvement in programmatic transparency. This report, based on real-time actionable intelligence from 40-plus marketers, enables participants to measure their performance against industry standards. Key performance indicators (KPIs) such as the number of hops in transactions, sustainability impacts, and brand safety metrics are central to this benchmarking effort. The move from 44,000 to 23,000 average domains per campaign and the reduction of MFA spend from 15% to 4% are notable progress markers. However, continuous vigilance and improvement are necessary as the industry evolves.
The quarterly benchmark is not just a static report but a dynamic tool that provides ongoing insights into the programmatic ecosystem. By aggregating data from multiple marketers and continuously updating the benchmarks, the report allows marketers to see how their performance stacks up against industry averages. This transparency is crucial for identifying areas where improvements can be made, whether it’s reducing the number of intermediaries in the supply chain or ensuring that ads are displayed in brand-safe environments.
Moreover, the benchmark report helps marketers understand the impact of their programmatic advertising on broader business objectives. For instance, the number of hops in a transaction can affect both the sustainability and carbon footprint of a campaign. Each intermediary in the supply chain consumes energy and resources, so reducing the number of hops can lead to more sustainable advertising practices. Similarly, brand safety metrics ensure that ads are not placed on inappropriate or harmful websites, protecting the brand’s reputation and increasing consumer trust.
The Role of CTV in Transparency
Connected TV (CTV) is poised to play a pivotal role in advancing programmatic transparency. The inclusion of CTV in the transparency benchmark is a response to its growing importance and the unique challenges it presents. While the speakers think it is a misnomer to think that the supply chain in CTD is as clean as you think it is, it’s cleaner at the top with the premium publishers. But as you get into the long-tail there are more hops than most people understand. Unlike traditional programmatic channels, CTV involves a more complex supply chain, often leading to hidden fees and inefficiencies.
CTV has become an essential part of many marketers’ strategies due to its ability to reach audiences in a more engaging and immersive format. However, the rapid growth of CTV has also brought about new challenges in transparency and measurement. The programmatic ecosystem for CTV is often more fragmented than for other channels, with multiple intermediaries involved in the process. This fragmentation can lead to higher fees and reduced transparency, making it difficult for marketers to understand where their ad dollars are going.
By incorporating CTV data, marketers can gain a comprehensive view of their media spend, ensuring that more dollars are directed towards actual media rather than intermediary fees. The commitment to include CTV in future transparency initiatives reflects a broader industry trend towards holistic transparency and accountability.
By including CTV in the transparency benchmark, the ANA TAG Trustnet initiative aims to bring the same level of clarity and accountability to this rapidly growing channel. This will involve working closely with CTV providers, publishers, and technology platforms to ensure that log-level data is available and accurately reflects the entire supply chain. This data will help marketers understand the true cost of their CTV campaigns, identify any inefficiencies, and make more informed decisions about where to allocate their budgets.
Driving Industry-Wide Change
The call to action from industry leaders at the event is clear: marketers must insist on transparency and take advantage of the data now available to them. By leveraging certifications and benchmarks, such as those provided by TAG Trustnet and the ANA, marketers can hold their partners accountable and drive the industry towards greater transparency. The potential for real-time audits and continuous data flow ensures that transparency is not a one-time effort but an ongoing process.
The TAG Certified for Transparency Program, which many companies including Google, Meta, Amazon, Trade Desk, Walmart and others have joined, provides a rigorous framework for ensuring that all participants in the supply chain adhere to high standards of transparency. This certification involves a thorough audit of the company’s data practices, ensuring that log-level data is consistently available and accurate. For marketers, this certification provides assurance that their partners are committed to transparency and accountability, making it easier to make informed decisions about where to invest their ad dollars.
The success of these initiatives relies on widespread adoption by both marketers and their partners. As more companies join the transparency movement, the pressure will increase on others to follow suit. This collective effort will drive industry-wide change, making programmatic advertising more efficient, effective, and trustworthy.
Conclusion
The advancements discussed at the ANA TAG Trustnet event highlight the critical importance of programmatic transparency in marketing procurement. By embracing these changes and insisting on detailed, actionable data, marketers can enhance their efficiency, protect their brands, and ultimately achieve better outcomes from their ad spends. The commitment to continuous improvement, real-time actionable intelligence, and the inclusion of CTV in transparency benchmarks are all steps in the right direction. As the industry continues to evolve, these efforts will help ensure that programmatic advertising remains a powerful and effective tool for marketers and procurement professionals alike.
In summary, the push for greater programmatic transparency is not just a trend but a fundamental shift in how marketing and procurement professionals approach their work. By demanding more transparency from their partners and utilizing the tools and benchmarks available, marketers can reclaim wasted ad spend, improve the efficiency of their campaigns, and build stronger, more trustworthy brands. The future of programmatic advertising is bright, but it requires a collective commitment to transparency and accountability to fully realize its potential.
