For years media buyers have tolerated the waste everyone knew was part of cheap CPM media buys because, well, they were so blessedly cheap.
Here’s another way of reading these figures: So long as it regards fraud as a cost of doing business, legitimate media budgets are unwittingly financing a worldwide criminal enterprise of bad actors to the tune of billions of dollars.
The hard cost of cheap, open programmatic CPMs easily climbs a lot closer to the $5 media value you get with far more accountable premium media buys.
Marketers are increasingly taking greater control of their advertising, especially in digital media, raising questions about the future role of media ad agencies.
More than a third of respondents in a new ANA study said they’ve expanded their in-house programmatic media buying capabilities and reduced the role of external agencies that previously performed the same function, an increase from 14% in 2016.
Specifically advertisers are moving sensitive responsibilities in-house and more closely scrutinizing their media investment costs and decisions, Liodice said.
Dive Brief: More than one-fifth of U.K. brands, or 22%, plan to decrease their spending on programmatic advertising due to concerns over cost and performance, according to a QueryClick survey reported on by The Drum.
Just 40% of the 150 marketing executives surveyed said they believe their digital ads were seen by people in 2017, while 7% thought the proportion viewed by humans versus bots was at least 80%. Among the brands planning to decrease programmatic ad spend, 46% said their shift is driven by a lack of alternative buying options, 41% said it’s due to a lack of pricing transparency and 39% blamed concern over where their ads would be placed.
In 2017, U.S. brands like Chase and P&G reduced their programmatic spending with little to no impact on ROI, highlighting the potential inefficiencies in the ad buying method.