That research shows global advertisers are shifting programmatic away from agencies was no surprise to me. Digital advertising budgets are being wasted because of lack of control and transparency in programmatic buying, equating to billions of pounds lost in undisclosed fees and margins to unknown middlemen.
But that’s not the only issue. Agencies are paid on a percentage-of-media basis, which provides them with a perverse reward for high volume, rather than quality, of impression.
Advertisers need to ask their media and agency partners some hard-hitting questions: Where exactly are ads running and why there? Who is seeing them and how many times? What intermediaries are involved in the process? What am I paying for the intermediaries and the ads? What was the result of the ads against my KPIs?
If any answers are unsatisfactory, or if it’s difficult finding the appropriate party to ask, then it’s probably time to look at alternative ways of running your programmatic campaigns.
Mark Connolly, chief revenue officer and vice-president of international, AudienceScience