Avoiding Ad Wastage in Programmatic Buying

Avoiding Ad Wastage in Programmatic Buying: Tips and Tricks

A study by the ANA’s Programmatic Media Supply Chain Transparency revealed
some shocking statistics: of the $88 billion spent on open web programmatic advertising,
around $22 billion — or one in every four dollars — is wasted or unproductive. When we
look deeper into the flow of this investment, only about 36 percent (or less) actually
reaches the intended audience. This represents a significant opportunity for advertisers
to improve efficiency and reduce waste.
Contrary to popular belief, ads don’t always need to be highly complex, hyper-
personalised, or micro-targeted. Simpler ads, when paired with contextual targeting, can
be just as effective. The key lies in eliminating ad fraud and inefficiencies, which can make
even the most straightforward ads perform at a much higher level.
Below are the steps you can take to avoid ad wastage, control fraudulent activity, and
ensure your ads are reaching the right audience.

1. Identify and Exclude Made for Advertising (MFA) Websites
MFA websites exist solely to generate revenue from ads, offering little to no real value for
growth-focused campaigns. Regularly pull the list of apps and URLs from your demand-
side platform (DSP) and exclude MFA sites. Third-party verification tools like DoubleVerify
and DeepSee can help you identify and block these sites, ensuring your ad budget is
spent on more reputable platforms.

2. Prioritise Trusted Sellers
Whenever possible, buy inventory directly from authorised, trusted sellers rather than
resellers. Resellers often inflate costs by adding unnecessary markups, and their longer
supply chains tend to generate more carbon waste. Trusted sellers are typically more
transparent and less likely to engage with MFA sites, enhancing both your media spend
efficiency and sustainability.

3. Use Inclusion Lists for Broader Targeting
If your targeting is too broad, consider starting with an inclusion list. This could be a
selection of the top 500 to 1,000 websites with high organic traffic. These sites typically
offer better content quality and user engagement, improving your chances of reaching
the right audience.

4. Leverage Ad Verification Features
Make use of ad verification tools available in your DSP. Enable brand safety features to
ensure that your ads aren’t served to invalid traffic (IVT) or non-viewable inventory. This
will help safeguard both your budget and brand reputation.

5. Evaluate Quality Benchmarks Regularly
Ensure that your ads are hitting key quality benchmarks in terms of brand safety,
viewability, and invalid traffic. Set up regular reviews to monitor performance and adjust
campaigns as needed to meet these standards.

6. Pre-Evaluate Inventory in PMP Deals
When running private marketplace (PMP) deals, pre-evaluate the inventory to ensure
there are no MFA websites involved. Verify that the content on these sites is brand-safe
and aligns with your campaign’s goals.

7. Optimise for Transparency in DV360
In DV360, you can avoid wasting impressions by excluding confidential sellers and non-
transparent inventory. To do this, select the "Non-Reportable Sites and Apps" option
under channels. This hidden list in DV360 can be added at the advertiser level, allowing
you to skip manual selection for every line item.

8. Reduce Carbon Emissions with Smarter Buys
Be mindful of the carbon emissions generated by your ad campaigns. A longer supply
chain means higher emissions, and MFA sites tend to generate more carbon waste
compared to quality sites. More productive, direct media buys can not only improve your
campaign’s effectiveness but also reduce your environmental impact.

9. Use Attention as a Key Performance Indicator (KPI)
In addition to traditional metrics like CTR, consider measuring attention as a KPI. Focus on
optimising ads that drive high interaction and exposure, as these are more likely to be
noticed and remembered by your target audience.

10. Regularly Review In-App Inventory
In-app inventory tends to be riskier, with a higher likelihood of bot traffic. Evaluate the
apps you’re running ads on, especially if they show unusually high click-through rates
(CTR). High CTRs might not indicate success — they could be the result of automated
bots. Metrics like attention and engagement can give a better sense of whether your in-
app ads are truly effective.

11. Maximise Viewability
Ensure the majority of your impressions are viewable. Ads that aren’t viewable won’t have
the intended impact, no matter how good the targeting is. Regularly measure and
optimise your campaigns for viewability to ensure that your ads are being seen by the
right people at the right time.Conclusion
Programmatic buying offers vast opportunities, but it also comes with challenges like ad
fraud, wasted spend, and carbon emissions. By focusing on transparency, optimising for
attention, and using tools to block MFA sites, you can significantly reduce waste and
drive better results for your campaigns. Implementing these best practices will help
ensure that your ad budget is spent efficiently, with measurable outcomes that
contribute to both your business goals and a more sustainable advertising ecosystem.