New report finds nearly a tenth of advertisers’ budgets are spent on programmatic display and video ads on clickbait sites, reducing return on ad spend amid growing privacy and privacy pressures budget.
Media investment analytics firm Ebiquity found that clickbait and made-for-ads (MFA) sites captured $115 million of their clients’ $1.47 billion advertising budget in January. 2020 to May 2022.
This translates to 7.8% of their clients’ advertising budget, rising to 9.8% for US clients. A sample of $750,000 in ad spend found that only ten advertisers spent more than $1 million on the “most offending areas” on the Global Misinformation Index.
These conclusions, drawn from Ebiquity Tackling Responsible Media The report, which was released this week, comes as the belt tightens and budgets shrink in response to changes in tracking and privacy, changing consumer habits and rising inflation.
Growing mistrust drives sustainable advertising trend
While clickbait and MFA sites initially seem like a good deal for advertisers due to their low CPMs and 77% viewability rates, Ebiquity says advertisers aren’t getting the return on investment they might expect. expect.
Poor user experience and low impact impressions often result in low return. Appearing on these sites can also have a lasting negative impact on the brand experience. This could even include boycotts and other bad publicity that is not always easy to recover from.
Ebiquity’s report found that sustainable advertising would make consumers 84% more likely to buy. And it’s not just consumers and spam sites that advertisers need to consider.
Thirty-nine percent of marketers cut spending with major platforms in 2021, with 54% citing misinformation and hate speech as their decision.
General distrust of the media and online sites has grown considerably over the past year. A recent Gallup poll found that only 16% of consumers in the United States have significant trust in news organizations.
Privacy and security are also important factors in promoting sustainable advertising practices.
A study by Reuters and YouGov found that less than a third of consumers trust online retailers (33%) and social media platforms (25%) for their data.
This growing mistrust is not entirely unfounded.
High-profile stories like the Cambridge Analytica scandal and a record number of security issues in 2021, combined with extensive misinformation and disinformation campaigns on multiple fronts, have brought privacy, security and trust to the fore.
The EU introduced the General Data Protection Regulation (GDPR) and Google phased out third-party cookies to address these concerns, but the results are less than ideal. Ebiquity’s report found that 92.6% of scanned domains placed at least one third-party cookie before obtaining user consent. At the same time, other companies will likely continue to offer user ID for ad tracking.
Next steps for advertisers
With average advertiser supply chains comprising 200,000 unique domains and apps, owned by 3,000+ companies, and managed through 200+ ad exchanges, there are many complexities and considerations when it comes to advertising. Yet, it’s getting too expensive for brands to ignore.
Those looking to nurture their reputation and bottom line should dedicate time to regular and in-depth analysis of supply chains, monitoring and media monitoring.
The report is available on Ebiquity’s website.
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