The IAB reported $107.5 Billion was spent on Digital Advertising in 2018. “A Mind blow of a number”. Most of that 107B doesn’t purchase ads and what ads do get purchased are of debatable value. Investors continue to be dazzled by the flamboyant glitter of AdTech, while overlooking the greater (and more important) conversation of Efficacy.. “As consumers have shifted to mobile devices and multiple devices, it’s created tremendous opportunity for advertisers”, a PwC spokesperson said.
Opportunity for who? Advertisers… or investors in Ad Tech?
According to the World Federation of Advertisers “Compendium of Ad Fraud Knowledge for Media Investors”:
$100,000,000,000
-5% for the Agency = $95,000,000,000
-15% for the Trading Desk = $80,000,000,000
-10% for the Demand Side Platform = $70,000,000,000
-25% for “Data” layering, Targeting and Verification = $45,000,000,000
-5% for the Ad Exchange = $40,000,000,000
-15% Ad Fraud = $25,000,000,000
Indeed the report referred to these as “platform Fees”, or “money that the buyer is spending that gets soaked up in the supply chain that does not make it to the publisher”. I like to call it waste.
More than .75 cents of every digital $1 is comprised of either Search (45%), which is a demand fulfillment activity consumers take after learning about a product or service (likely from TV or Radio), and Display (31%); creepy (behaviorally based), annoying (load times and pop ups), or completely ignored (banner blindness). “Internet advertising leads TV advertising (the second largest share) by $36.5 billion in FY 2018”. But keep in mind “Internet Advertising” is comprised of a myriad of formats (Social, Mobile, Desktop, Search, etc..).
In the “About” section of the IAB’s internet advertising revenue report, desktop and mobile online advertising revenues from websites, commercial online services (cloud, search, ISP’s), ad networks and exchanges, mobile devices, and email providers are all sited as the categories used to collect the data reflected. But later in the report they go on to say that “Innovative platforms like over-the top television, podcasts, virtual reality, and augmented reality all have the potential to help marketers forge even stronger ties with audiences, as brands navigate the new ‘consumer first’ playing field.” Sorry, But OTT is a digital extension of TV and Podcasts are a digital extension of Radio, the TWO BEST Marketing Communications Channels by every measure and hardly “websites, exchanges, mobile or email”. A Partner at PwC expands on the report and shines his light, “Year after year, brands have been increasing their commitment to digital as a primary channel to reach consumers. The analysis in this report highlights important drivers and trends that could influence interactive’s trajectory in the years to come, as marketers look to new formats and technologies to help them connect with consumers.” Come on bro .. that new media lingo is so pass’e.
There’s Online Advertising for your Business and there’s the Business of Online Advertising. What’s good for AdTech isn’t necessarily good for your Brand.
