Trust is the solution to the biggest challenges of digital advertising


Column – In the current supply chain of digital advertising, transparency, fraud and control are mentioned as the biggest challenges. The solution to this has to do with trust. Trust in programmaticin suppliers, in new channels (such as CTV) and confidence in the sector.

When there is a lack of trust, there is a reluctance to share resources and knowledge. This restraint makes the market less transparent, ultimately making the entire ecosystem less efficient and more susceptible to fraud. But progress is being made to address the problem of fraud and lack of transparency. For example, all kinds of developments are taking place that are necessary to help the sector move forward. I explain them further below.

An ecosystem in development

From more regulations and more privacy features for platforms, to the rise of walled gardens: the entire ecosystem is trying to get to grips with a rapidly changing media and marketing landscape.

Google and Meta have obtained a dominant market position in recent years. Some advertisers are trying to break free from this duopoly, although they still spend part of their budgets with both parties. Yet there are alternatives. For example, marketers can partner with a supply-side platform (SSP) that can provide the necessary reach. But there are also alternate IDs and context-dependent solutions that help improve addressability.

Publishers have an important say here because they can tell advertisers a lot about their audience and provide insights they can’t get anywhere else. Of course without violating the privacy of users.

Supply-side targeting

Where targeting traditionally took place on the demand side, this is now changing. This is partly due to new privacy rules, the consolidation of technologies and the growth of private marketplaces (PMP).

Today, media buyers bring their data to the supply side. And they are experimenting with multiple methods of supply-side targeting (e.g., ID targeting, contextual targeting, and third-party data targeting). This ensures more efficiency, a better overview of the campaign planning, and higher match rates. Overall, a larger percentage of the advertising budget is therefore used to distribute the content across the various media channels with better results.

With publishers leveraging their own data and investing in more complete data strategies, media buyers can work more closely with supply-side partners to gain a more complete picture of their audience.

More focus on Supply Path Optimization

Using Supply Path Optimisation (SPO) the sector has taken major steps to make the supply chain more transparent and more balanced. This is partly because buyers and publishers need to work better together to make transactions more efficient.

Setting up SPO deals with buyers involves turning a number of knobs to meet their needs. While the price is important, the degree of innovation is a crucial factor. Think of a tailor-made technological solution or access to data that offers the buyer added value. This allows buyers to think about how to efficiently source for their customers while creating an environment where publishers can maximize the value of their content and audience.

More transparency

Using the right technology is essential to make the supply chain more transparent. This is something that both the buy-side and the sell-side are responsible for. Everyone – supplier, broker or buyer – involved in a programmatic transaction must have the appropriate reporting tools to ensure full transparency of the transaction.

More information and closer cooperation are also crucial to improve transparency. The best way to start is to familiarize yourself with reliable sources and have conversations with customers so they know where their media investments are going. It will then be easier for ad tech parties to clarify their added value and gain access to extensive data.

There’s no question that programmatic is here to stay. And there are more people than ever working in digital advertising. Huge opportunities are up for grabs as the industry moves towards true collaboration. As a sector, we are all responsible for this change and we must hold ourselves accountable.


Source: Frankwatching by www.frankwatching.com.

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