Leah Askew, SVP, Head of Precision Media, Digitas North America, said: “In a post third-party cookie world, the biggest challenge for advertisers is that there isn’t a ubiquitous one-size-fits-all answer, I think many advertisers have a plan. They have components of how they’ll move forward, but no one is completely clear on how it’ll all come together, just yet.”
- Digital wastage in the programmatic supply chain: nearly a quarter (23%) of the annual $88bn spent on programmatic advertising is wasted
Despite some improvements, the programmatic ecosystem remains rife with waste. Analysis by the ANA revealed that nearly a quarter (23%) of the annual $88bn spent on programmatic advertising is wasted.
Advertisers are taking steps to reduce wastage through:
- Supply path optimisation (SPO): Advertisers are focusing on fewer, direct routes to advertising inventory by cutting out unnecessary supply path intermediaries.
- In housed capabilities: Some advertisers are bringing capabilities in house to increase visibility and control over programmatic trading.
- Sustainability measurement: A minority of advertisers are attempting to measure and reduce the carbon footprint of their programmatic campaigns.
Prasad Ghag, Global Head Of Media, Digital & Strategic Planning, Sanofi, comments: “In the programmatic world, the supply chains are so long, and the ecosystem is a bit of a ‘black box’. However, by taking steps to exclude Made-for-advertising (MFA) websites from campaigns, we’ve improved our efficiency and significantly reduced our carbon footprint.”
- The expansion of programmatic in emerging channels: 62% of marketers are only moderately confident (or worse) in their data, analytics and insight systems
The growth of programmatic media is being fuelled by emerging channels including gaming, connected television (CTV), programmatic audio, digital out of home (DOOH) and retail.
The promise of emerging channels like CTV and DOOH lies in their ability to combine the mass reach of linear channels like television and OOH, with the more sophisticated buying, targeting and measurement capabilities of digital media.
However, with 62% of advertisers being only moderately confident (or worse) in their data, analytics and insight systems, according to CMO council, the growth of these channels pose a number of challenges:
- Holistic and standardised data: As investment in media continues to fragment, advertisers are battling to standardise data across channels.
- The challenge of ad fraud in emerging environments: Fraud is pervasive across the entire programmatic ecosystem but there is particular concern in new, high demand channels such as CTV.
- Balancing open web and walled garden’s Demand Side Platforms (DSPs): The expansion of new media types is introducing new walled garden environments to the programmatic ecosystem, creating more challenges for advertisers around transparency and integration.