Navigating the Complex Landscape of Programmatic Advertising

Solutions for Common Pitfalls

Programmatic advertising has revolutionized how marketers reach their audiences, offering unprecedented scale and precision. However, as the ecosystem grows more complex, several issues have emerged, impacting campaign efficiency, transparency, and environmental sustainability. Identifying these challenges is the first step toward crafting effective solutions.

The ANA Programmatic Media Supply Chain Transparency Study, released in December 2023 is a 125 page master-piece in detailing the industry struggles and quantification of the waste of marketing dollars. The report offers many ways for marketers to improve productivity and reduce waste in their own programmatic supply chain. The PlayBook offers 16 areas that Clients can optimize transparency, brand safety and control of their spend. We have highlighted the fixes that we believe Clients can action immediately.

While we all need to read the 125 pages, and take on every one of the ANA recommendations in the report, we decided to address some of the lower hanging fruit opportunities for marketing procurement to get started with optimizing their programmatic spend— below are strategies to address common pitfalls such as the “Spray & Pray” approach, the prevalence of Made For Advertising (MFA) sites, the debate between exclusion and inclusion lists, the importance of direct contracts with Demand-Side Platforms (DSPs) and Supply-Side Platforms (SSPs), and the pressing need for sustainability in digital advertising.

Spray & Pray: A Targeted Approach

The “Spray & Pray” method, characterized by distributing ads across tens of thousands of websites, often results in inefficiency and diluted impact. To combat this, advertisers should significantly reduce the number of sites to a curated list of 75–100, specifically chosen for their relevance to the target audience. This approach not only enhances the effectiveness of ad spend but also facilitates more meaningful engagement. Updating these publisher lists monthly ensures that the strategy remains dynamic and responsive to changing audience behaviors. The first step here is to pull a standard report from the client’s DSP (demand-side platform).

Tackling Made For Advertising (MFA) Sites

MFAs, designed solely to generate ad revenue with little regard for content quality, pose a unique challenge. Advertisers should conduct regular audits to gauge the extent of their spend on MFAs. Awareness of the environmental impact is crucial, as MFAs are known to generate 26% more carbon emissions than non-MFA inventory. Resources like Scope3, Ad Net Zero, and the Global Alliance for Responsible Media (GARM) offer valuable insights for advertisers looking to make informed decisions regarding their MFA investments.

The Power of Inclusion Lists Over Exclusion Lists

Rather than relying on exclusion lists to block undesirable sites, advertisers should adopt inclusion lists. This proactive strategy involves curating a list of publisher domains that align with the target audience’s interests, ensuring ad placements are relevant and effective. Regular updates to this list can adapt to evolving consumer preferences and digital landscapes.

The Strategic Advantage of Direct Contracts

Direct contracts with DSPs and SSPs, as well as ad verification partners, offer advertisers greater control over their programmatic buys. Starting with the DSP contract can lead to enhanced transparency and access to valuable data. Similarly, partnering directly with ad verification partners helps ensure high standards of viewability, brand safety, and protection against invalid traffic. Additionally, an SSP optimization strategy that focuses on a select group of 5–7 preferred partners can streamline spending and improve efficiency. It may also generate financial benefits to the Client when they partner with fewer SSPs and therefore consolidate their programmatic spend.

Emphasizing Sustainability in Programmatic Advertising

Sustainability is becoming an increasingly important consideration in programmatic advertising. Advertisers should prioritize buying through direct inventory paths to minimize the number of intermediaries, thereby reducing costs and carbon footprint. A focus on 75–100 high-quality, trusted sellers allows for access to premium inventory while supporting environmental sustainability. Avoiding resellers further ensures that ad spending contributes to a more sustainable and transparent digital advertising ecosystem.

Conclusion

The programmatic advertising landscape, while offering vast opportunities, also presents significant challenges. By adopting a more targeted approach, scrutinizing investments in MFAs, leveraging inclusion lists, securing direct contracts, and prioritizing sustainability, advertisers can overcome these obstacles. Implementing these strategies not only enhances campaign performance but also contributes to a more responsible and efficient digital advertising environment. As the industry continues to evolve, staying informed and adaptable will be key to navigating its complexities successfully.