“The Sell Sider” is a column composed by the sell side of the digital media neighborhood.
Todays column is composed by Greg Garunov, EVP of organization and strategic advancement at Sightly.
When upon a time, firms and brands railed versus walled gardens, and for great reason.
They didnt desire Big Tech saying, “Trust us, your advertisements were viewable, delivered to your ideal audience with no fraud and had super-great performance.”.
In 2016, social media and content marketing business Crowd Siren accused Facebook of pumping up video metrics and lying about it. Crowd Siren took legal action against, and after an exhaustive evaluation of around 80,000 pages of internal files, Facebook admitted it had actually overstated the amount of time users spent viewing videos by between 60% and 80%.
Advertisement purchasers required independent third-party confirmation from the similarity DoubleVerify, Nielsen and Integral Advertisement Science. The outcome was the introduction of a robust measurement market. This previous summer, IAS reported a 55% year-over-year boost in income, generating $75.1 million. DoubleVerify made $244 million in 2020, up 34% from 2019.
But current acquisitions, such as IASs purchase of CTV ad server and analytics company Publica for $220 million, are beginning to blur the line. When did it end up being okay for advertisement tech vendors to grade their own homework?

In 2016, social media and material marketing business Crowd Siren accused Facebook of inflating video metrics and lying about it. Crowd Siren sued, and after an exhaustive review of around 80,000 pages of internal documents, Facebook admitted it had overstated the amount of time users spent viewing videos by between 60% and 80%. Crowd Siren put the figure at 900%.
Ad buyers demanded independent third-party verification from the likes of DoubleVerify, Nielsen and Integral Advertisement Science. Every publisher or media platform selling advertisement space has its own unique algorithm that governs the way its site functions.

Misaligned rewards.
My good friend Zach Kubin, VP of sales at Adelaide, encapsulated the concern well in a recent LinkedIn post: “Congrats to the team at Publica who have bootstrapped their way to rather an exit … but I have some hypothetical concerns about this … Like, what takes place when a business has to measure the media that they now own and the individual in charge of yield is getting screamed at by a sales person whos just attempting to hit his quota? Or what could potentially go incorrect when a large, public business thats accountable to shareholders begins inspecting its own research?”.
When purchasers turn over their media budgets and state, “Here, do your thing,” they do not necessarily understand the extent to which the backend mechanics work toward the publishers or the tech platforms objectives. True, the seller guarantees to put the buyers interests initially, but public companies are obliged to focus on the interests of their shareholders– and that implies optimizing their own earnings.
This is specifically why media purchasers rely on measurement companies to have their backs. The concern is: Can purchasers still trust that the media community is delivering on its pledges?
Automation has led to opacity.
Advertisers and their companies have constantly been eager to guarantee their advertisements are delivered as prepared for and that purchasers are able to maximize whatever company outcomes they wish to attain.
But in the early days of digital advertising, advertisement measurement was restricted and largely manual. Buyers went through media strategies line by line to discover placements providing the best results, and after that instructed the publisher or tech platform to allocate more dollars toward those positionings.
Automation was urgently required. With it came opacity.
Over the previous 20 years, the industry has actually become enamored with the idea of “secret sauce.” Every publisher or media platform selling ad space has its own special algorithm that governs the way its website functions. Their goal, naturally, is to take full advantage of income per advertisement shown..
Making complex matters further, numerous sellers arent quite sure how their companys backend mechanics work– possibly a hard tablet to swallow, however its real– and this makes having a forthright discussion about how a campaign will be delivered practically impossible.
Followed the lessons of other sectors.
In 2008, we saw the threats of too-cozy relationships. At concern: Banks paid scores firms to grade their complex bonds of subprime home mortgages. Not remarkably, most of them received AAA scores, prompting institutional financiers such as state pension funds to invest in them..
Ultimately, this unhealthy dynamic brought the economy to its knees. Numerous states continue to struggle to fulfill their pension responsibilities.
While the digital marketing market is simply a fraction of the total economy, there are still trillions of dollars at stake– to state nothing of the trust that advertisers have in the impartiality of third-party measurement.
Marketers considered it unwanted and harmful when the walled gardens graded their own research. Theres no factor not to apply the same requirement to other tech vendors today.
Follow Sightly (@SightlyHQ) and AdExchanger (@AdExchanger) on Twitter.

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