By now, digital advertisers and publishers should be aware that 2017 saw a substantial surge in counterfeit ad revenue for online opportunists. Advertiser and Publisher demand to address the issue rang loudly in the direction of Google and other large ad networks. The Interactive Advertising Bureau (IAB), an organization dedicated to developing industry standards, conducting research, and providing legal support for the online advertising industry, emerged from the scrum with an answer, Ads.txt.
The IAB’s Solution: Ads.txt
The IAB-developed framework, Ads.txt, has changed the face of online advertising by outing fraudulent ads across the internet and renewing confidence among advertisers and publishers. By adding this file, a publisher’s webmaster can effectively filter out the bad ad peddlers. At this point in time, an estimated 12% of the top 10,000 websites have implemented the framework, which is too low by many industry accounts. However, implementation of the Ads.txt framework continues to increase steadily.
Programmatic Advertising After Ads.txt
The uproar over fraudulent ads has prompted some of the biggest names in online advertising to take a second look at how they approach programmatic advertising. The new name of the game is efficiency. Where once upon a time billion-dollar companies threw money at advertising every which way and hoped to make it stick, now reducing ad spend to only the most relevant instances has proven to have no dramatic effect on returns. That means they’ve been spending money on either fraudulent ads or otherwise irrelevant ad inventory that hasn’t yielded those precious conversions companies seek.
Advertising Efficiency In Action
Two examples in particular highlight the effort and its results. The transnational consumer goods company Unilever has enacted a year-long push towards efficiency and cut 30% of its ad spend, with plans to reduce that number even further. The company hopes to ultimately bring an end to what it sees as frivolous ad buying. Unilever has already seen returns of double their investment this year and the figure is projected to remain consistent according to a study conducted by the IAB UK.
Unilever’s contemporary, Proctor & Gamble, revealed it had enacted a similar undertaking earlier this year, detailing that it had cut ad spend by $140 million. The result? No change to the company’s bottom line. The save in spending and continued growth of P&G only emphasize the tendency for multinational companies to overspend on advertising. With results like these and businesses demanding more transparency from the likes of Google and Facebook, one can expect more large brands to follow suit and reevaluate their approach to purchasing ad space.
What It Means For Publishers’ Revenue
Taking into account this year’s surge of fake online ads revelation and the success these huge companies are finding when implementing ad buying cutbacks, publishers might find their revenue streams slowly dipping if they don’t offer a relevant medium through which advertisers can connect with customers.
Implementing the IAB’s Ads.txt and providing quality content that aligns with brands as well as speaks to consumer needs are widely regarded as the best solutions in addressing the issue.
How AdMetricsPro Protects Publisher Revenue
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