The latest study from ISBA and PwC reveals that brands lose half of the programmatic ad spending
The ISBA Programmatic Supply Chain Transparency Study says around 15% of programmatic advertising spending is unattributed to players in the supply chain. The study that was carried out by PwC reveals only 51% of advertising spend is received by publishers while the remaining goes towards various fees charged by demand and supply-side platforms.
The study is based on data collected from 15 advertisers, eight agencies; five demand-side platforms (DSPs), six supply-side platforms (SSPs), and 12 publishers, representing approximately £100m in UK programmatic media spend.
Some key highlights from the study –
- Agency fees account for 7% of the programmatic ad spend
- Demand-side technology ropes in 10% of advertiser money
- Demand and supply-side platforms each represent an 8% cut
According to the study, only 12% of 267 million ad impressions paid for by brands for publishers’ websites were accounted for. Researchers came across a weak link in ad tech suppliers’ shared data and an inconsistency in data storage and formatting. They found that data captured by a DSP for an impression was not equally captured by SSPs, which affected the impression matching. Of the 51% of ad spending, the study attributed 35% to suppliers, including the agency, SSP, DSP, and technology providers.
Some of the brands in the study were appearing on a significant number of websites over a period of three months. The study said there is a need for standardization across several areas to improve data-sharing and drive transparency. In addition, industry collaboration is important to further investigate the unaccounted data. A cross-industry task force has been set up to work on these two issues, said the study.
Publishers are expected to be more selective about their partners and modify terms on which they do business. Some work with a small number of SSPs while others with a larger number to benefit from a greater volume of ad impressions.