Advertising waste stems from three main issues: ad fraud, the programmatic tech tax and auction dynamics.
Advertisers need an “accredited, third-party holistic verification” system in place to make a coordinated effort to combat advertising waste. The silos in the digital media supply chain often stop existing verification companies that serve as meditators between buy and sell-side, from completely serving their purpose.
Ad frauds, like Invalid traffic (IVT), will lead to a projected loss worth $50 billion and requires more accountability across all parties. Though the technology to address IVT- verification exists and is used widely in the industry, this needs to be “accredited by a third party.”
While there has been a shift towards more transparent bidding process, second-price auctions are still prone to manipulation by ad-tech vendors. There is a need to design proper auction-verification capabilities and similar technologies to track any potential manipulation of second-price auction rules.
[4 minute read]