The Association of National Advertisers (ANA) concluded that $22 billion of the $88 billion spent on open web programmatic ads is inefficient or wasteful.
The prospect of walled gardens was not included in the ANA’s Programmatic Media Supply Chain Transparency Study, which was centered on the open web ad market. It tracked $123 million in total ad spend with 35.5 billion impressions between September 2022 and January 2023, involving 21 advertisers and 12 supply chain organizations.
Measuring the flow of money through the programmatic supply chain with extreme precision, the ANA study discovered that just $0.36 of every dollar that enters a demand-side platform (DSP) actually reaches a consumer.
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How far does it travel?
- Ad-tech intermediary costs come to about $0.29.
- An additional $0.35 is allocated to low-quality media, such as non-viewable, non-measurable inventory, invalid traffic (IVT), and made-for-advertising (MFA).
- One supply-side platform (SSP) in the study took nearly 45 percent of the media spend, whilst the majority of SSPs took less than 5%.
According to the study, advertisers could boost the productivity of their ad spend by almost 20% if they could measure and price inventory according to its quality.
Additional study findings include:
The supply of MFA is increasing. By the middle of 2023, it accounted for almost thirty percent of all web auctions, up from about five percent in the beginning of the year.
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The 21 marketers in the study employed an astonishing 44,000 websites and applications on average for their efforts.
In contrast to rational markets, the open web ad market showed little to no link in terms of price and quality, according to the study.
Why it matters to us. Ironically, in a data-rich marketing industry, inefficiencies can sometimes be attributed to a lack of visibility and data. The report’s analysis of the data is predicated on log-level data, which is an exhaustive log of every aspect of an impression.
The study indicated that advertisers could cut waste and obtain more value for their money if more of them got log-level data from the tech vendor across their supply chain and compared the data to illustrate where value is hidden and where there is no value at all.
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