Two recent pieces on MediaPost highlight the continued requirement for advertisers and marketers to pay really close attention to where they put their digital ad dollars (which are pretty much ALL ad dollars these days).
The first article talked about the Network Advertising Initiative's (NAI) shift from a required privacy code to a “framework,” and the second exposes the unsettling reality of ad dollars funding criminal activities. Together, they paint a stark picture for advertisers.
The NAI's move might seem like a subtle tweak on the surface. However, it signifies a profound change in the approach to consumer privacy. For years, the NAI's code provided a semblance of self-regulation, a set of guidelines that, while not legally binding, offered a degree of consumer trust. Now, the emphasis shifts from strict rules to broader principles. This change is, of course, in line with the recent changes that Meta instituted, doing away with consumer and brand safety monitoring and instead going to a voluntary self-reported system similar to X’s approach.
advertisement
advertisement
As an advertiser, this shift demands a heightened sense of responsibility, as I have written before. Now more than before, marketers must embrace a proactive, ethical approach to data collection and usage. Transparency and consumer consent become even more paramount. Simply complying with the minimum requirements won't suffice. We need to build trust by demonstrating a genuine commitment to privacy and responsible use of consumer data. This means clear, concise disclosures about data practices, robust opt-out mechanisms, and a willingness to prioritize consumer well-being over short-term gains.
The implications extend beyond compliance. Advertisers will need to invest even more in robust data governance and security measures, not just to avoid regulatory scrutiny, but to safeguard their brand's integrity. Not doing so can quickly turn consumers against you.
The second article is one that should send even more shivers down every advertiser's spine. The revelation that digital media buys are funding criminal activities is a stark reminder of the dark side of programmatic advertising. The opacity of the digital supply chain makes it difficult to trace where our ad dollars end up, even with the best efforts and safeguards in place.
As I have written before, we are experiencing a moral and ethical crisis in the advertising industry. We cannot claim ignorance.
We have a responsibility to ensure that our ad dollars are not being used to fuel harm. This requires a fundamental shift in how we approach media buying. We need to demand greater transparency from our partners. We need to scrutinize the publishers we work with and hold them accountable for the content they distribute.
The solution isn't simple. It requires a collaborative effort from all stakeholders, including advertisers, agencies, publishers, and technology providers. We need to adopt stricter standards for publisher verification. We need to create a culture of accountability where everyone is responsible for ensuring the integrity of the digital advertising ecosystem, with real penalties for those that break the rules of what is acceptable.
For advertisers, this means rethinking our KPIs. We need to ask ourselves: What kind of impact are our ads having on the world? Are we contributing to a better society, or are we inadvertently fueling harm? The days of blind optimization are over. Advertisers must now prioritize trust, transparency, and ethical considerations. The future of our industry depends on it.
Maarten, I was rather surpised to see your comment that digital advertising is pretty much "all" advertising. It's not, at least for many branding campaigns and branding accounts for roughly 45-50% of an average national advertiser's ad/promo spend. What's more "TV"---linear plus CTV, plus radio and print media represent a majority of the average branding campaign's ad spend, with TV, itself accounting for 55-65% of it. Just because CTV is growing in ad spend that doesn't mean that it's being used "the digital way". Most national TV advertisers are buying CTV ad time in exactly the same way they by linear and the sellers are being obliged to comply.
But returning to your basic point about advertisers accepting---and taking---greater responsibility for their digital buys, which I agree with, the problem is how to do that? Hire massive "media staffs" that check the buys on a random basis and when fraud or bad placement is found, say, 30% of the time simply reduce what you pay to the seller by that amount? But who funds this massive checking process---the advertiser? I think not.
What should be done--in my most humble opinion--- is for major advertisers to demand that the sellers police their buys and provide some sort of independent auditing of those cases where payment should be refused. So long as advertisers and agencies use computerized buying, they aren't going to fully eradicate these problems--but if they make the sellers pay for them that might be enough to get some, at least, to clean up the mess on their websites. Or they could buy direct and stop swallowing the programmatic low CPM bait.
I should add that not all programmatic services are to blame and, perhaps, there is another route that can be taken by getting these services, themselves, to take concrete and unified action to police the buys so they are "advertiser friendly"
But to get anything done advertisers need to exert organized and massive pressure on the selling/buying system and start to penalize the prime offenders by not using them.