Change is Tough as ANA Ad-Tech Project Shows

The Association of National Advertisers (#ANA) announced in April 2021 that they would investigate the market for programmatic media in order to help its members navigate their way through a jungle that is often impenetrable to advertisers.

Previous studies had shown that advertisers lose up to 50% of their budget in transaction charges before an ad appears. Fees are charged throughout a multi-link supply-chain and much of the cost is unreported and unexplained.

The loss is even greater when lack of effective exposure of the ads is included. A further 30% or more can be lost on top of the 50% depending on which channels are being programmatically bought and how.

Most advertisers simply can’t calculate their loss because the convoluted supply-chain prevents it, contracts are sketchy and measurement is imprecise.

The ANA study has not been plain-sailing. Some major advertisers did not participate, including Diageo, Unilever and Procter and Gamble, according to  Digiday .

Obstacles have also been met through non- or partial participation by Google and The Trade Desk, the two largest ad tech players in the market.

Digiday reported earlier this week (June 6th) that PwC, the lead contractor hired by the ANA to conduct the study, is no longer involved. There will be a topline summary of the study results presented in Cannes on June 19th. We can expect to see more in-depth results then, so we will report further.

At MMC we support the trade associations’ efforts to provide better data and transparency for advertisers and we encourage all stakeholders to participate. After all, why wouldn’t we all want the advertising industry to operate professionally?

However, advertisers should also take control for themselves. Changing an industry is hard and time-consuming, and advertisers can move more quickly and achieve more by structuring their own advertising operations with commercial partners who offer transparency, supported by contracts that facilitate it and, of course, by audit rights that verify it.

There is no need to wait for the whole industry to change. Much can be achieved now through smart supply-path configuration and contractual rigor. It’s surprising what can be achieved with a clear purpose, the right partners and a clear roadmap.

We look forward to #canneslions2023, but whatever the results, advertisers can and should push hard to achieve greater transparency and better outcomes for themselves without delay.