The Latest Media Trends in Review: Focus on Cheap Reach Inventory
In the realm of digital advertising, a new concept is emerging – “cheap reach inventory.” Spearheaded by Jounce Media, the consultancy responsible for leading the charge against malicious ad practices last year, this term refers to ad inventory that is deemed “chronically non-viewable.” Chris Kane, the founder of Jounce Media, defines cheap reach as a category of supply originating from websites or mobile apps that boast high-quality content and a genuine audience, yet provide a subpar ad experience due to low viewability rates.
Distinguishing cheap reach inventory from fraudulent practices like ad arbitrage, Kane emphasizes the importance of recognizing sites that, despite their reputable nature, fail to deliver quality ad placements to users. This classification is crucial for buyers to avoid investing in portfolios that offer low-quality ad placements, even if the publishers themselves are considered reputable.
Jounce Media employs a systematic approach to identify cheap reach inventory, focusing on the supply path level and analyzing each ads.txt entry in a publisher’s file. While the current measurement process is described as “incredibly simplistic,” based mainly on viewability rates, Kane acknowledges the need for a more refined evaluation method in the future. Typically, ad placements classified as cheap reach boast viewability rates below 15%, including spots in content recommendation widgets, comment sections, and click-through slideshow stories.
In a recent Supply Path Benchmarking report by Jounce Media, vendors such as Outbrain, Taboola, Connatix, Disqus, and OpenWeb were identified as operators of cheap reach inventory. The report highlights the potential impact of cracking down on cheap reach on businesses accustomed to leveraging such ad placements. Jounce Media even utilized cheap reach as a filtering criterion for its 2024 bellwether list of recommended publishers for advertisers.
Notably, the consultancy removed several publishers, including Tribune Publishing, Weather.com, DMG Media, and Fox, from their prestigious bellwether list due to their association with cheap reach ad products. For instance, Weather.com, previously part of the IBM portfolio, was found to have over 52% of its bid requests leading to cheap reach placements, raising concerns about the quality of their ad inventory.
While Jounce Media has actively flagged cheap reach to its clients and in research reports, buyers have yet to adopt a widespread blocking strategy for these ad placements, unlike the decisive action taken against MFAs. As the industry navigates the complexities of digital advertising, the concept of cheap reach inventory stands as a key focal point for advertisers and publishers striving to enhance the overall ad experience.