Recently I was telling a group of publishers that, unfortunately, much of the business that has supported journalism (advertising) has always been smoke and mirrors. Advertisers took it mostly on faith that they were getting what they were paying for (i.e., increased sales or influence). I don’t doubt that they got some of those benefits, but probably never nearly as much as the people selling ad space promised.
That’s a problem: If integrity is supposedly what you have to offer your audience or community, then it’s bad business to shaft your customers (the advertisers).
Then along came the age of digital advertising, and finally some direct evidence of advertising’s impact started creeping in to the picture: clickthroughs, etc. These metrics were flawed and digital advertising mostly sucked (but then again, so did most print and broadcast advertising), but it was a step toward accountability, at least theoretically.
And then there was a development that purported to go even further toward helping advertisers and marketers ensure that they were spending their money usefully across all media, digital and otherwise: the demand-side platform. Wikipedia currently defines this as:
A system that allows digital advertisers to manage multiple ad exchange and data exchange accounts through one interface. Real time bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences.
DSPs are unique because they incorporate many of the facets previously offered by advertising networks, such as wide access to inventory and vertical and lateral targeting, with the ability to serve ads, real-time bid on ads, track the ads, and optimize. This is all kept within one interface which creates a unique opportunity for advertisers to truly control and maximize the impact of their ads.
Sounds good — except that DSPs can be mostly smoke and mirrors all over again, just with more data attached.
Check out Confessions of a Demand-Side Platform Salesperson, from Digiday this week:
Anyone that has not worked at a DSP or a trading desk, consider yourself lucky. It is the cesspool of our industry, with the DSPs racing towards an acquisition or IPO and the trading desks trying to validate themselves as valuable within the holding companies. It is a sweatshop environment on both sides, with workers who are bludgeoned from the top down.
…I think it is time for the major advertisers to get in and take responsibility for how their dollars are being spent. There is double-dipping within many agency/trading desks, and your advertising dollars are not as impactful as they have been. The tires need to be violently kicked at a trading desk before agreeing to allow your dollars to go through there.
Also, the big publishers need to man up, regain their integrity and pull out. Madoff pulled off his scheme under the watchful eye of the SEC. You think the same thing isn’t happening under the oh-so frightening eye of the IAB?