Survey Shows Almost $3 Billion of Programmatic Ad Spend Reviewed by World’s Biggest Brands

The world’s largest advertisers want and demand more control and transparency from their suppliers and hence they are reviewing how they buy digital advertising programmatically.

Nearly 90 percent of advertisers it surveyed are “reviewing and resetting contracts and business models,” shows a research by the World Federation of Advertisers. Those ads that make use of automated technology for buying and placing them on websites are known as programmatic ads.

59 of its members who had made a total ad spend of more than $70 billion were used for the survey by the WFA. While out of a total of approximately about $20 billion of that accounts that were used as expenditure on digital advertising, a total of $3.2 billion or about 16 percent of the amount was spent on programmatic ads, it says.

Given that 90 percent of advertisers claim to be looking at their contracts, this means that around $2.9 billion-worth of ad spend is under review.

Among the total number of firms surveyed, 46 percent of them are in the tendency of using of Independent Trading Desks while seventy percent of those surveyed use Agency Trading Desks or those trading means that are within media agencies and such spending were used either the main way they buy programmatically or in certain markets.

With usage going up 12 percentage points since it last conducted similar research in 2014, ITDs are growing in popularity, the WFA says.

Especially in terms of how media agencies mark up online ad inventory they have bought directly from media owners, advertisers want greater transparency from suppliers in terms of how deals are done. Disagreement was expressed by sixty two percent of those surveyed with the statement: “We have ‘opted-in’ to principal trading and are comfortable with the potential conflicts of interest.”

While 33 percent of those surveyed said that it was “non-disclosed or non-transparent”, just over half (53 percent) of those surveyed said they have a “disclosed or transparent” relationship with their programmatic provider.

“Programmatic has expanded rapidly and it’s no surprise that the market and mechanisms that big brands use to spend through this channel are evolving,” said the WFA’s global media and digital marketing lead Matt Green in an emailed statement.

“The rise of in-house, hybrid models and independent trading desks demonstrates that the original trading model left much to be desired. The second generation of trading models is now being built and while agency trading desks still take the greatest share of digital spend there are now real alternatives being developed that give brands more control over data and technology alongside the wider push to ensure greater transparency,” he added

(Adapted from CNBC)

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