Media audiences are all over the place: it’s rare that you have only one shot to engage with your desired customer. When Chase Bank can cut the websites on their advertising schedule from 400,000 to 5,000 without any change in the reach of their schedule that tells you something. I believe we are building an infrastructure around excess media supply that does not deserve to be monetized in the first place. This argument holds only if the audience in the Long Tail is truly unduplicated and cannot be found elsewhere. Some proponents of Programmatic Advertising argue that this complicated ecosystem is required to enable a marketer to access audiences that are sitting in the Long Tail of the media supply chain. It’s wasted on infrastructure to prop up all those opportunities to buy individual audiences across the entire Programmatic Advertising supply chain. We now know which half of an advertising investment is wasted. It falls into the hands of all the third parties that arrequired to feed the beast that is the overly complex Programmatic Advertising ecosystem. This means that for every dollar an advertiser spends in Programmatic Advertising over half (55%) of that dollar never reaches the publisher. When you need an ad blocking service to avoid buying questionable content and a separate verification service to make sure that the ad was viewable by a human, how is this valuable? When you add up all the costs associated with the ten different layers, they account for 55% of the cpm (cost-per-thousand) that an advertiser pays for a programmatic ad. I believe they are being overly generous by calling each a “value” layer. The IAB identified ten different value layers in the Programmatic ecosystem. ![]() How bad is it? How much money are advertisers spending on this murky supply chain? The IAB (Interactive Advertising Bureau) answered this for us when they released their White Paper, “The Programmatic Supply Chain: Deconstructing the Anatomy of a Programmatic CPM” in March of 2016.
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