ANA introduces first guide for programmatic media buying
News in brief
The Association of National Advertisers has released its first ever guide to help CMOs streamline the programmatic media buying process by removing waste and inefficiencies and maximizing ROI.
“It has been estimated that for every dollar spent in programmatic channels, less than half goes to showing digital ads,” states the guide. “It has been estimated that 40 to 65 percent of every dollar spent programmatically goes to the publisher; the balance is spent on the services, technology, and data that power programmatic buying. Without visibility into all the cost drivers of a programmatic campaign, advertisers lack the data to make informed decisions on the value of each technology and service offering.”
Recommendations for marketers include:
Gather all existing bills associated with the media supply chain.
Break down the expenses to the most granular level possible, aligning the bill items to the programmatic cost items.
Reach out to suppliers to understand the line items that are not broken down to a granular level.
Create a process to get access to this data on an ongoing basis.
Make formal requests for the data that is not broken down.
Prioritize the things that can be addressed first, such as agency and platform fees.
Establish a process for tracking all progress.
The guidelines were created by the ANA’s CMO Global Growth Council.
The ANA says its recommendations could generate $8-16bn globally in savings each year.
“Most companies are paying more than they have to for their media supply chain,” said ANA CEO Bob Liodice. “This is due to factors such as the rapid development of programmatic ad buying, a lack of transparency, the overlap of many providers and services, and the complexity of the process itself. This guide will help marketers overcome those obstacles and significantly reduce their programmatic costs.”
