The latest report published by MadHive confirmed that AdLedger and the Industry Index describes AdTech as a fundamentally broken industry that needs to change
The report titled ‘Complexity, Opacity & Frustration: Why AdTech Must Change Now’ argues that the industry finds itself in a very strange situation. AdTech buyers are frustrated with the unsatisfactory performance of tech solutions and frauds, their complexity, and opacity; nonetheless, they are still exploring to add to their existing technology stack. In a nutshell, buyers are unsatisfied with their purchases but continue making the same purchases.
The tech stack of AdTech buyers refers to technologies that marketers are most likely to use. They need them to make the best choices on when, how, and where to advertise. The study conducted by Industry Index Research revealed that, on average, participants utilize 28 different marketing and advertising technologies.
However, as per the report, these solutions fail to perform as well as expected. A survey by the authors revealed that ad fraud, brand safety, and transparency are the areas about which publishers and advertisers have the most concerns. 71% of respondents confirm that Fraud Control Tools usually perform the worst.
Ad fraud is predicted to be about $5.8 billion by 2019, according to Adweek. Some respondent’s estimates are much higher, as massive as $30 billion.
The report squarely blames the AdTech vendors as technologies allow opacity and its perpetuation. In essence, these AdTech vendors are offering solutions to the problems that they create. This is majorly due to the structure of this industry itself as the AdTech vendors are unable to cut the middleman out when they themselves are the middlemen, as confirmed by the respondents.
Indeed, this current situation is darkly comical, as 80% of the marketers and publishers expect AdTech vendors to fix their issues with the AdTech ecosystem.
The solution is not the rejection of technology stacks. Fraud will still exist, and brands would again face risks. However, the situation is yet too complicated for AdTech buyers to resolve, and there is not much incentive for the AdTech vendors to change.
Blockchain would become the prevailing technology in this new structure. It provides immutable and incorruptible proof, and so does away with the existing trust-based model. This would allow marketers and publishers to get the simplicity, transparency, and safety they desire, and the ad performance would become their responsibility. The most critical element, however, is that the AdTech vendors would be coaxed to work within the market forces and provides cost-efficient and practical solutions.