• by Michael Lyons , Op-Ed Contributor, Yesterday

As media leaders guiding clients through a dynamic, fragmented, and increasingly expensive advertising landscape, we must confront a hard truth: too much of today's programmatic ad spend still fails to deliver real value. According to the latest Q1 2025 ANA Programmatic Transparency Benchmark, only 41% of programmatic budgets go to impressions that meet basic quality standards (non-IVT, measurable, and viewable).

The rest? Waste.

The newly introduced TrueCPM Index — which factors in impression-level quality — reveals a 37.8% optimization gap, translating into a staggering $21.6 billion in potential efficiency gains across the global programmatic ecosystem. If you're accelerating spend in CTV or programmatic channels, this data should be a wake-up call.

The Problem Is Structural, Not Tactical

The issue isn't just about buying better inventory. It's about fundamentally changing how we approach programmatic media. Today's marketplace rewards volume over value, creating a race to the bottom where quality gets lost in the shuffle.

First, open web programmatic bidding continues to hemorrhage value, with too many ad dollars chasing low-quality inventory on the long tail of Made-for-Advertising (MFA) domains. While MFA spending has dropped dramatically, from 15% to just 0.4% since 2023 — the real issue isn't just MFA. It's the lack of accountability across sprawling supply chains. With the median marketer now buying across 19 SSPs and 53,799 domains, blind scale often replaces strategic investment.

Second, even premium channels show vulnerability. CTV inventory now makes up 30% of reviewed spend, but can still introduce new inefficiencies, including rising non-viewable and non-measurable impressions. If CTV is your growth area — and it is for most brands — it’s time to get ahead of these challenges.

The Solution: Direct Relationships and Data-Driven Accountability

The path forward requires a strategic reset built on two pillars: direct-to-publisher relationships and impression-level transparency.

Direct publisher partnerships — anchored by closed-loop measurement using impression-level log data (LLD) — can dramatically reduce waste by cutting through the intermediary maze that characterizes today's programmatic ecosystem. By narrowing the funnel to trusted, high-quality publishers, marketers can dramatically reduce waste, improve media productivity, and insulate themselves from fraudulent or non-viewable impressions.

But direct relationships alone aren't enough. Success also requires closed-loop measurement using impression-level log data (LLD), the granular transaction records that show exactly what you're buying and from whom. This isn't just transparency for transparency's sake; it's the foundation for optimization.

Platforms like the ANA’s Transparency Benchmark give marketers access to real-time cost and quality diagnostics, AI-driven optimization feedback loops, and third-party validation on ESG and data privacy metrics. In a market where every dollar must prove its value, these tools are no longer optional — they’re foundational.

What This Means for Your Strategy

For direct-to-publisher strategies to deliver on their potential, marketers must consider several key factors:

Simplified your supply chain: The data reveals that 90% of impressions come from just 3,000 domains, yet the median marketer buys across nearly 55,000. This presents a clear optimization opportunity. Validate that your current approach isn't simply adding complexity without adding value.

Clear data transparency: Impression-level log data creates a foundation for optimization. Without granular transaction records, you're making media decisions in the dark. This data should be table stakes for any meaningful programmatic partnership.

Strategic publisher relationships: Whether through private marketplaces or direct deals, cultivating relationships with quality publishers creates competitive advantages that extend beyond cost savings. The most effective advertisers maintain dynamic partnerships that secure premium inventory while remaining flexible to market opportunities.

The Opportunity Is Clear

The $21.6 billion efficiency opportunity identified by the ANA isn't theoretical. It's actionable — and it's within reach. Marketers who capture this value are those who prioritize meaningful, high-quality connections over scale for scale’s sake, and who demand accountability at every step of the supply chain.

To thrive in today's media landscape, you must trade complexity for clarity, volume for value, and blind bidding for transparent, strategic partnerships. Profitable growth doesn't happen by accident — it’s the result of intentional, accountable investment. The opportunity is clear. The tools are here.

The time to act is now.