Challenges and Opportunities In Programmatic Media

A complex web of transactions and interactions unfolds in the vast and intricate world of programmatic media buying. Studies by ISBA and ANA have lifted the veil on the pressing issues plaguing this landscape, revealing a pressing need for transparency, collaboration, and technological innovation.

In this edition of LabTalks Weekly, we take a closer look at the Media Supply chain and how the Programmatic industry is broken. We will also talk about the challenges, the opportunities and what should agencies and brands do to get more from each of their dollar spent on advertising. Followed by Industry updates.?

Imagine a scenario where advertisers pour billions of dollars into programmatic advertising, only to find that a staggering 95% of impressions are unmatchable between the buying-side (DSP) and the selling-side (SSP) data (ISBA 2022 study). This means that a mere 5% of ad spend is financially transparent, leaving a majority of advertisers in the dark about their investment's true impact.

This is the reality for many brands, with a staggering 62% citing lack of transparency as a major concern (ISBA study). The programmatic landscape's complexity, with multiple intermediaries involved, leads to confusion and inefficiencies, making it challenging for brands to track their investments effectively.?

As we delve deeper into this intricate world, we find that measurement and attribution issues persist, with 75% of publishers reporting ad fraud in their programmatic transactions (ISBA study). Ensuring brand safety has become a critical concern, as advertisers want assurances that their ads are placed in appropriate environments. The industry's Achilles' heel is the lack of standardised measurement protocols, making it difficult to accurately assess the effectiveness of campaigns. Unmonitored supply chains enable domain spoofing, which accounts for 20% of programmatic spending (ANA study). You can learn more about this from our Co-founder Ben Putley here.

However, amidst these challenges lies a no. of opportunities. Collaboration among stakeholders is essential for enhancing transparency and effectiveness in the supply chain. Industry-wide standards and best practices are expected to emerge, fostering a more transparent and efficient media supply chain. This collective effort will foster a more transparent and efficient programmatic landscape, where all stakeholders can thrive.

Technological innovation is also playing a vital role in shaping the future of programmatic media buying. Advances in Blockchain,? AI and machine learning are being explored as potential solutions to improve transparency and accountability within the programmatic ecosystem. These innovations will enable real-time monitoring, automated fraud detection, and optimised ad placement, revolutionising the way we approach programmatic advertising.??

As we navigate this complex landscape, it becomes clear that the path forward requires a multifaceted approach. By prioritising transparency, collaboration, and technological innovation, advertisers, publishers, and intermediaries can create a more accountable and effective programmatic landscape. The journey ahead will be marked by challenges, but with collective effort and innovation, we can unlock the true potential of programmatic media buying.

Opportunities:?

Standardisation and collaboration are imperative: ?

• The adoption of ads.txt has reduced domain spoofing by 30% (ISBA study).
• Cooperative efforts have led to a 25% increase in programmatic transparency (ANA study).

Data transparency and accountability are essential:?

• 80% of advertisers require granular, real-time data to optimise programmatic campaigns (ISBA study).
• Publishers and intermediaries must prioritise data transparency, with 90% of advertisers citing data accuracy as crucial (ANA study).

Programmatic hygiene demands attention:?

• Regular audits and monitoring can detect and mitigate 85% of ad fraud cases (ISBA study).
• Advertisers and publishers must prioritise programmatic hygiene, with 70% citing it as essential (ANA study).

Education and training are critical:?

• 60% of industry stakeholders require comprehensive education and training on programmatic media supply chain dynamics (ISBA study).
• Ongoing knowledge sharing and skill development are essential, with 80% citing it as vital for staying ahead (ANA study).

At Alkimi, we are leading the way in all of the above and more. With Alkimi’s Ad Exchange being at the helm of reducing ad fees while being 100% transparent and sustainable, you can give your brand or agency the freedom from Ad fraud and make your ad dollars reach the right audience for the right price. You can write to us at [email protected] to know more.

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Stay tuned for our next issue, where we’ll discuss how brands can leverage the Alkimi Ad exchange to create a more transparent and sustainable advertising supply chain. You will hear from our very own Raman Sidhu about the problems in the current ecosystem and how ad agencies, Alkimi and brands can help solve them, together.

Till then, Stay Amazing!