“This report shows that a fundamental shift is underway towards optimizing the quality path. Rather than simply focusing on low cost ad inventory in programmatic environments, marketers carefully deploy SPO strategies to seek out high quality media backed by effective investments, ”said Tony marlow, CMO, IAS.
Programmatic purchasing continues to grow worldwide – top estimate 154 billion dollars in ad spend in 2021 – and more and more advertisers are using supply journey optimization strategies to achieve better results. The latest IAS study found:
Video ads dominate programmatic buying, while CTV and Audio are booming
The majority of advertisers (52%) say that more than half of their ad budgets are purchased programmatically today, while 80% say it represents a third or more of their spend. Video ads are leading the pack when it comes to programmatic buying, especially in mobile and social environments. Social video (71%), mobile web video (61%) and mobile app video (60%) formats lead the rankings in this survey, while emerging formats like CTV (38%) and Digital Audio (37%) show that there is still room for growth.
Benefits abound, but transparency and media quality issues persist for media experts
Advertisers continue to turn to programmatic, with 54% saying maximizing reach and audience scale is the main benefit. However, advertisers say the lack of transparency in programmatic (42%) is a major challenge, along with the increase in ad fraud (44%) and brand risk (46%). In some cases, brands and agencies disagree; nearly 1.5 times more agency experts are concerned about the increase in programmatic ad fraud than brands. To address concerns about transparency, many industry experts are turning to strategies for optimizing the supply journey for their campaigns.
SPO strategies are on the rise, but brands and agencies disagree on who is responsible
60% of ad buyers are already activating SPO strategies to maximize the effectiveness of their campaigns. As these tactics develop, 95% of ad buyers will step up their SPO efforts by working with outside consultants or providing supply path verification technologies. 48% are currently using or planning to implement third-party verification and monitoring technology to control and optimize campaigns to the most cost-effective, high-quality media supply channels. While they agree on whether or not, brands and agencies disagree on who should take responsibility for SPO and media quality. When asked about this, 47% of brands and 38% of agencies agree that brands are responsible for the day-to-day operations of SPOs; in contrast, 29% of brands and 38% of agencies believe that agencies are responsible for these tasks. This disconnect highlights the importance of greater alignment between media buyers to fully realize the benefits of supply path optimization.
The IAS Perfecting Your Supply Path: The Expansion of SPO in Programmatic study surveyed 200 U.S. brands and agencies to better understand perceptions of programmatic advertising and how they activate strategies for optimizing the supply journey.
About Integral Ad Science
Integral Ad Science (IAS) is a global leader in digital media quality. IAS makes every impression count, ensuring ads are seen by real people, in safe and responsive environments, enabling contextual targeting, and optimizing the supply path. Our mission is to be the global benchmark for trust and transparency in the quality of digital media for the world’s biggest brands, publishers and platforms. We do this through data-driven technologies with signals and actionable information in real time. Founded in 2009 and based in new York, IAS works with thousands of leading advertisers and publishers around the world. For more information visit integrads.com.
SOURCE Integral Ad Science, Inc.