The Transparency Issue in Programmatic Advertising
Programmatic advertising has changed how brands reach consumers, but it also introduces serious challenges, particularly around transparency and brand safety.
Recent studies, including one by Adalytics, have found instances where ads from major brands like Meta, Amazon, and Disney have appeared alongside highly inappropriate content, such as racial slurs and explicit imagery. This not only damages brand reputation but also highlights the limitations of current ad verification technologies.
The complexity of the programmatic supply chain, with multiple intermediaries between the advertiser and the end consumer, often leaves brands in the dark about where their ads are placed. Despite using advanced brand safety tools like content classification and keyword blocking, these safeguards are proving inadequate. Ads continue to slip through the cracks, ending up in unsuitable placements that can severely harm a brand’s image.
The problem is further exacerbated by the incentive structures within the AdTech industry. Many ad verification vendors are paid on a per-impression basis, which may disincentivise them from blocking harmful content, as it would reduce the number of impressions served. This creates a conflict of interest that undermines the effectiveness of brand safety measures.
A study by the ANA (Association of National Advertisers) on the programmatic media supply chain further highlights these inefficiencies. The study revealed that only 36 cents of every dollar spent on programmatic advertising actually reaches the intended audience. The rest is lost to fees and inefficiencies within the supply chain. The ANA estimates that addressing these issues could unlock $22 billion in potential efficiency gains for marketers.
To tackle these challenges, the industry needs to implement stricter standards and demand greater transparency. Advertisers should be insisting on full URL-level data from their DSPs, media agencies, and verification providers, allowing for independent evaluations of the brand safety measures in place. This data is important for identifying and rectifying the gaps in the current system.
There’s a need for a fundamental rethinking of the incentive structures within the AdTech ecosystem. Verification vendors must be more transparent about the limitations of their technology and work closely with brands to develop more effective safeguards. This means better technology, stricter oversight, and a commitment to transparency across the board.
Ultimately, ensuring brand safety in the programmatic space is not just about protecting a brand’s reputation—it’s about restoring trust in the digital advertising ecosystem. Without significant improvements in transparency and safeguards, brands will continue to face substantial risks in the evolving landscape of programmatic advertising. The industry needs to step up and make the necessary changes to ensure that the promise of programmatic advertising is fulfilled without compromising brand integrity.
At Windsorborn, we take a proactive approach to tackling the challenges of programmatic advertising. By owning our seat in the technology stack, we eliminate intermediaries, giving us greater control and transparency over where your ads are placed. This control ensures your brand is safeguarded in every environment.