Cannes Lions 2024: The Evolution of Programmatic Ecosystem Governance
During the well attended Cannes Lions 2024, ANA and its partners, TAG Trustnet and Fiducia hosted a much anticipated Launch Event for the Programmatic Transparency Benchmark initiative. RAUS Global was honored to attend and listen to key industry experts sharing their deep knowledge and expertise of programmatic media buying.
The programmatic advertising ecosystem, a vital component of digital marketing, has undergone significant changes in recent years. However, these advancements have not been without their challenges. Issues of transparency, technological adoption, and the ever-present debate between quality and cost are some of the critical areas that industry leaders are striving to address. ANA TAG Trustnet hosted an insightful panel on specifically these areas and the speakers delved into these challenges, emphasizing the importance of innovation, education, and the nuanced role of technology in enhancing the digital media supply chain.
Transparency and Technological Challenges
The first and foremost issue highlighted in the discussions is the lack of transparency within the programmatic supply chain. This problem is multifaceted, encompassing both technological and behavioral aspects. On the technological front, there is a significant lag in the tools available to help marketers understand the intricate details of their media spend. The rapid development of digital media technology outpaced marketers’ ability to effectively harness it, leading to a gap in understanding and utilizing these tools efficiently.
As one industry expert noted, “We understood the benefits but didn’t grasp all the nuances of what these technologies would entail.” This statement underscores a fundamental issue: while the sell-side rapidly developed these technologies, the buy-side struggled to keep up, leading to inefficiencies and a lack of transparency.
Behaviorally, marketers have been slow to adapt to these new technologies, often due to a reluctance to delve into the complexities of the digital media landscape. This hesitation is partly driven by a fear of uncovering inefficiencies and wasteful practices. The notion that “it’s difficult to get a man to understand something when his salary depends on his not understanding it” aptly describes the inertia within the industry.
Education and Awareness
Another critical area identified is the need for better education and awareness among marketers. The rapid pace of technological advancements has created a knowledge gap, where marketers are often ill-equipped to leverage new tools and platforms effectively. Education and awareness are crucial in bridging this gap, enabling marketers to make informed decisions and optimize their media spend.
The role of education extends beyond just marketers. It is equally important to involve procurement and finance teams in this educational journey. These departments often play a pivotal role in decision-making, and their understanding of the digital media landscape can significantly impact the efficiency and effectiveness of media investments.
The emphasis on education and awareness is not just about understanding the technology but also about appreciating the value of quality over mere cost savings. One panelist pointed out that educating clients about the importance of quality impressions versus cheaper, lower-quality alternatives is crucial. This education can shift the focus from short-term cost savings to long-term strategic investments in quality media.
The Quality-Cost Debate
The ongoing debate between quality and cost in digital advertising is another critical issue. The pandemic-induced financial pressures led many marketers to prioritize short-term gains, often at the expense of quality. However, there is a growing realization that quality matters, and it should be a central consideration in media planning and buying.
Quality in digital advertising is not just about the immediate returns but also about the long-term benefits. High-quality media placements can enhance brand reputation, improve customer engagement, and ultimately drive better business outcomes. However, achieving this quality often requires a willingness to invest more upfront.
One interesting perspective shared during the discussions was the notion that “quality is expensive.” This statement reflects the reality that ensuring quality in the programmatic ecosystem often involves additional costs, such as implementing advanced verification technologies and maintaining stringent standards. However, the long-term benefits of such investments can far outweigh the initial costs.
Moving Towards a Balanced Ecosystem
The journey towards a more transparent, efficient, and quality-focused programmatic ecosystem is ongoing. It requires concerted efforts from all stakeholders, including marketers, agencies, technology providers, and industry bodies. Standardization and benchmarking studies, such as those conducted by the ANA, play a crucial role in this journey. They provide valuable insights, raise awareness, and help set industry-wide standards.
One notable achievement from these studies is the significant reduction in the number of websites used in campaigns, from an average of 44,000 to 23,000. This reduction indicates progress towards more curated and strategic media buying practices. However, there is still a long way to go, as even 23,000 websites represent a vast and fragmented media landscape.
The concept of inventory curation, where dedicated teams assess and select quality publishers, is becoming increasingly important. This practice ensures that media spend is directed towards high-quality sites, maximizing the effectiveness of campaigns and reducing waste.
The Role of Log-Level Data
A critical enabler of transparency and efficiency in the programmatic ecosystem is access to log-level data. This granular data provides detailed insights into media transactions, allowing marketers to make informed decisions and optimize their media spend. However, obtaining this data remains a challenge due to contractual and technical barriers.
The reluctance of some ad tech vendors to share log-level data highlights the need for greater collaboration and transparency within the industry. Addressing this issue requires a shift in mindset, where all stakeholders recognize the value of data sharing in achieving a more transparent and efficient ecosystem.
The journey towards transparency and efficiency is ongoing, but with the right strategies and collaborative efforts, the programmatic ecosystem can continue to evolve, delivering greater value to all stakeholders involved. As the industry adapts to these changes, the focus should remain on long-term strategic investments in quality and transparency, ensuring a healthy and sustainable future for digital advertising.
