"At a basic level, the reading of what actual spend is can no longer be taken for granted. The number of dollars leaving a client and being seen and heard by audiences can be reduced by up to 75% (estimates vary). What is being measured here? As for actual ad exposure, we've all seen the studies by the ANA and Isba, and no one knows what the walled garden waterfalls look like because... only they know and they're not telling."
"We do know that vast amounts of money are being squandered on ads that only get seen by bots (some benign) and lots that don't get seen by anyone at all. We also know that the thresholds for viewability are, er, questionable and we know why. We also don't know how much money is really extracted from advertisers' budgets (spoiler: lots) by some of the biggest global media agencies, thus further reducing ad exposure."
Ad spend is rising while advertising effectiveness is declining, producing much lower effectiveness per dollar. A significant portion of advertiser budgets never reaches human audiences; estimates suggest up to a 75% reduction between spend and audience exposure. Walled garden platforms obscure inventory and viewability practices, leaving true viewability on Instagram, Facebook, and TikTok unknown and likely poor. Large volumes of impressions go to bots or are unseen, and viewability thresholds are questionable. Major global media agencies and adtech firms extract substantial sums from advertiser budgets, diminishing campaign exposure and undermining the benefits of audience targeting.
Read at The Drum
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