By Michael Bürgi • January 3, 2024 • 3 min read •
Ivy Liu
Programmatic advertising has been under scrutiny. The recent study from the ANA showed a series of issues and yet, programmatic investments keep increasing in the marketing and media realms. What is the reason behind this?
Omnicom Media Group (OMG), a media agency network, asserts that the key is to address the problems and be cautious about investing clients’ dollars in programmatic means. By using its own standards and those of the ANA, OMG achieved outstanding results for its clients that outperformed the averages revealed in the ANA study.
Through its initiative under the Council on Accountability and Standards in Advertising (CASA), OMG aims to standardize and align the buy and sell sides of programmatic investment. Under the guidance of Ryan Eusanio, managing director of digital activation, OMG has been working with six major SSPs to align their common interests. This initiative is partnered with Magnite, Index Exchange, Google Ad Manager, Pubmatic, Freewheel, and Microsoft’s Xandr.
The results for participating OMG clients, including State Farm insurance, indicate that adopting shared standards and best practices from both ANA and its own initiative can lead to generating up to the 90th percentile for premium inventory. As a comparison, OMG was able to keep MFA delivery at less than 1%, whereas the ANA’s study found an average of 15%.
“As a State Farm partner, Omnicom Media Group has been a game-changer for our programmatic media strategy,” said Alyson Griffin, head of marketing at State Farm. ”Understanding where our ads are delivered and how they’re purchased are a key part of proving the effectiveness of our advertising.”
The ANA programmatic study from December utilized campaign data from 21 marketers, with over $120 million in ad spend between September 2022 and January 2023. Among other insights, it reported that only 36 cents of every dollar placed through a DSP actually reaches consumers, with 29 cents going toward ad-tech fees, and the balance ends up in low-quality media like MFAs and invalid traffic.
Even though OMG’s results overshadow the findings of the ANA’s study, Eusanio mentioned that it’s because of the uncovering by ANA that OMG was able to enhance results. It validates what the ANA observed.
BILL DUGGAN from ANA views it as a win-win for the industry. ”The marketers winning in programmatic advertising are those which take an active interest in media,” said Duggan, ANA’s group evp, who’s been leading the organization’s charge in pursuing programmatic clarity. “They ask questions, get answers, take action, and improve performance. And they work with agenda partners who understand that and are proactive on their behalf.”
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