ANA: Transparency Report (Again)

Maybe this time it will stick?

Bill Duggan's keynote at the ANA Advertising Financial Management Conference was not just a repeat of the presentation findings that have been out since June and December of 2023; it was an echoing cry to the advertising world to wake up and wise up about where their advertising dollars are going, particularly in the programmatic.

The presentation began with an overview of the ANA's report on programmatic advertising, where transparency and legitimate effectiveness reporting are often in short supply. Duggan explained that the report was released in two parts—first in June and then a complete version in December 2023 —to provide the industry with time to digest the findings and implement changes.

As Duggan went deeper into the report, he highlighted a particularly troubling issue: the prevalence of Made for Advertising (MFA) websites. These sites are the digital equivalent of junk food—cheap, lacking in nutritional content, and designed to lure in as many eyeballs as possible with sensationalist content.

The report found that a significant portion of advertising spend was wasted on these low-quality sites, which not only fail to deliver value but also pose risks in terms of brand safety and ad fraud.

"We tried to make this study fairly simple and actionable," said Duggan.

Sadly, despite these efforts, the advertising industry seems to be dragging its heels, perhaps overwhelmed by the complexity of the digital ad supply chain. As we saw, even brands that literally participated in this study were still buying MFA inventory as recently as January 2024.

"Advertisers must become far more responsible and provide more active stewardship of their media investments," said Duggan.

I would have to agree with Bill. Brands have not taken this study, or its underlying results seriously enough. This is clearly observeable by their behavior in market. Far too many brands are fueling the proliferation of MFA sites with their digital investments.

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The concept of "long tail" websites was another focal point. Duggan illustrated how sprawling the digital footprint of a typical ad campaign is, with some campaigns spreading out across tens of thousands of websites. This scattergun approach to advertising is outdated and inefficient, leading to diluted brand messages and increased exposure to risky websites.

In a tone mixed with humor and frustration, Duggan called out the industry’s lack of oversight and undereducation regarding these issues. He stressed the need for advertisers to demand greater accountability and transparency from their media agencies and to adopt a more discerning and strategic approach to digital advertising.

One of the more actionable insights from the report was the recommendation to streamline the number of websites in each campaign, advocating for a focus on quality over quantity.

Duggan also emphasized the importance of updating media agency contracts to reflect more stringent requirements on transparency and accountability, urging attendees to reassess their current contracts and push for terms that better protect their interests.

Throughout his talk, Duggan's message was clear: it's time for the advertising industry to stop settling for subpar quality and lack of transparency. He likened accepting poor returns on ad spend to being content with receiving only a third of a beer you paid for—a comparison that humorously yet poignantly captured the absurdity of the status quo.

The Highlights

• Twice the Reports, Twice the Fun: Duggan kicked off by sharing that the ANA launched their report in two waves in 2023. Just when you thought June brought enough excitement, December came with the full package. Who doesn't love a two-part series?
• Digital Domination: Most ad dollars are now spent digitally, making the digital marketplace a crowded and somewhat shady playground.
• Made for Advertising (MFA) Websites: The stars of the shaddy-show. These are essentially the clickbait hubs of the internet. "Chuck Norris says try this in the morning" – enough said.
• MFA Spend Alert: A whopping 21% of ad impressions and 15% of ad spends are lost to these MFA black holes. Time to stop feeding the beast.
• The Long Tail of Websites: Average campaigns run on 44,000 websites. Because why settle for a few when you can have tens of thousands?
• Quality Over Quantity: Streamline the number of websites you use. Less can indeed be more – more efficient, more safe, more sensible.

Tough Love

• Procurement Needs a Wake-Up Call: Advertisers are spending on low-quality, high-risk MFA sites because, apparently, cheap is irresistible. Remember, sometimes cheap can be expensive.
• Transparency is Like a Unicorn: Everyone supports it until it’s their turn to be transparent. Time to shine some light on those shady practices.
• Educate, Update, Innovate: It's time to get schooled in the digital advertising world. Update those dusty contracts and innovate beyond the "more is better" philosophy.

Action Items

• No More MFA Spending: If your ads are still showing up on sketchy sites, it's time for a new strategy. Demand better from your agencies.
• Trim the Fat: Reduce the number of websites. Focus on quality and trusted sellers.
• Get Smarter Contracts: Review and update your media agency contracts. Make sure they’re not just a free pass for agencies to sell you more digital junk.
• Learn the Game: Advertisers, you’ve got to dive deep into the digital ad world. Don’t just nod along in meetings – understand what you're buying into.