Why Programmatic Needs More Transparency

For digital advertisers, few issues cause more consternation than transparency.

In real-world terms: If a CMO spends $100,000 on advertising, how much of his or her budget goes to an end publisher to pay for advertisements that were viewed by a human being?

Currently, if you spend that budget on real-time, programmatic inventory on the open internet, perhaps half of the ad units you buy will be viewable. You then lose a portion of your investment to an alphabet soup of programmatic intermediaries—let’s say 25 percent, though the truly vexing problem is that it’s hard to know. In the end, you bought perhaps $37,500 in advertising that a human being actually engaged with.

It’s not a great system, which explains why so many marketers concentrate their budgets on Facebook, a platform that charges only for ads that scroll into view and that doesn’t rely on intermediary technology partners to execute campaigns.

But this isn’t a sustainable solution. At some point, Facebook will run out of real estate on its news feed. And despite the ubiquity and dominance of a few large social-media properties, most user time is spent engaging with the open internet—the vast ecosystem of apps, media and gaming sites that are struggling to achieve a fair share of digital advertising. This is despite their investments in quality, original content that is often superior in value to Facebook’s user-generated content.

What’s the answer? How do we create a more transparent programmatic landscape? How do we move toward a world where CMOs pay only for viewable impressions, enjoy full visibility into where their campaign dollars flowed, and have at least 80 percent of their spend end up in the publisher hands?
That’s the world we’re building for.

First, AppNexus believes that viewability will soon emerge as a default currency on the open internet. If you’re paying for impressions rather than views, you’re missing an opportunity.

Second, we eagerly embrace a not-too-distant future when CMOs adopt supply-chain transparency platforms (like Amino Payments) to gain end-to-end control over where their digital advertising investments actually land.

Marketers require full visibility into how their money is spent along the value chain, and what it ultimately buys. That visibility is lacking today, but as the programmatic industry undergoes consolidation and new technologies enable greater payment accountability, that reality is changing.

Who will be the first major marketer to see at least 80 percent of its spend end up in publisher hands, paying only for viewable impressions? AppNexus is fully committed to building this future. But this has to be a collaborative effort. Join us in building a better internet that works for marketers, publishers and consumers alike.

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AppNexus at a Glance

Creative tools, easy-to-use platforms and impactful media are things every marketer can appreciate. An audience that cares is something every marketer deserves.

AppNexus
28 West 23rd St., 4th Floor
New York, NY 10010
(646) 723-7844

Website
www.appnexus.com

Twitter
@AppNexus

Facebook
facebook.com/AppNexus

LinkedIn
linkedin.com/company/appnexus

Number of employees
1,000

Number of locations
23

Founded
2007

Focus
DSP

Key products

Console for Buyers: Enables marketers and agencies to customize algorithms and apply machine learning to improve performance outcomes.

Contact
Alex Chatfield
VP Sales & Account Management
achatfield@appnexus.com
(646) 825-6500