Commentary

Why SAG-AFTRA's Ad Tracking Rule Should Be The Industry Standard

For more than a decade, the U.S. advertising industry has been navigating a radical and unprecedented transformation. Industry standards and best practices around the creation, placement, and management of creative marketing assets are constantly being reshaped to align with the ongoing evolution and expansion of our digital media ecosystem. It's been a challenging journey, but one that continues to benefit immensely from the increasing adoption of standardized ad identifiers—the digital "bar codes" that track the distribution and performance of ads across multiple channels. 

The concept of standardized ad tracking isn't new; it’s been evolving for more than two decades, initially to improve the efficiency of processes for traditional media. However, as the way people consume media has changed, so has the purpose and importance of this tracking. With the rapid emergence of new digital display and streaming mediums, it became clear that ad identification had a much more fundamental role to play, both in easing the growing pains of rapid modernization and in shaping the future of U.S. advertising. 

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The most recent evidence of this shift comes from SAG-AFTRA, the foremost American labor union for media professionals. Their recently ratified three-year Commercials Contract mandates the use of AD-ID codes in all creative assets that feature union talent. This decision speaks not only to the existing value of such systems but also to how essential ad identifiers have become in an industry defined by widespread fragmentation. In this complex landscape, accurately measuring campaign ROI is no longer negotiable for optimizing marketing dollars and safeguarding against economic headwinds. 

For example, as video and display ads are distributed across an ever-broadening expanse of digital platforms, the ability to accurately and consistently track an ad’s visibility and performance across multiple mediums is critical. For SAG-AFTRA, this ensures that everyone involved in the production—from actors to costume designers—is properly and transparently compensated for their work. Utilizing an impartial and independent ad identifier in the US ecosystem enables trust and transparency in the calculation of residual payments, providing resolution to a major pain point. 

The centralization of cross-media campaign metrics makes it far easier to guarantee fair compensation and streamline compliance with union contracts. However, this strategic transition away from elusive, siloed data and toward standardized, trackable creative assets isn't just about fairness and transparency; it's the core component in a much more far-reaching evolution of how the advertising industry operates. 

The standardization of tracking and measurement translates to a wide range of business advantages, including improved operational efficiency, smarter planning, and an enhanced ability to influence purchasing decisions based on dynamic, data-driven insights into consumer behavior. Perhaps most importantly, standardized ad identification is the key to unlocking the comprehensive, cross-channel performance analysis needed to prove ROI and optimize budget allocation in today's complex media ecosystem. 

Economic volatility and uncertainty are top concerns among marketing professionals. A recent report from the Interactive Advertising Bureau revealed that 94% of advertisers are worried about how economic shifts will impact ad spend. This concern is understandable when you consider that a constantly evolving digital media landscape has made marketing dollars more vulnerable to waste than ever before. The ANA reported an astonishing $20 billion in waste associated with global programmatic advertising in 2023, much of which can be attributed to data access and transparency issues. 

Simply put, demonstrating ROI is becoming both more urgent and challenging. Previously straightforward questions about how, when, where, and how frequently ads are being delivered are almost impossible to answer without standardized tracking and measurement solutions. And while the adoption of these solutions continues to grow, with a boost from renewed mandates like SAG-AFTRA’s, there is still room for improvement. For instance, a recent audit of NBCUniversal found that only 15% of the media giant’s digital creatives were tagged with standardized identifiers. This generated discussion about their strong recommendation that creatives contain an ad identifier, which would allow them to better manage their own ad inventory and provide a better experience for viewers. 

Still, the advertising sector remains on a healthy trajectory toward modernization. Moving forward, increased industry collaboration, as well as continued compliance with requirements like SAG-AFTRA’s, should help accelerate widespread adoption among U.S. advertisers. This will allow them to more effectively streamline creative workflows, optimize performance, and maximize ad revenue across all campaigns. 

How can we as an industry work together to make universal ad tracking the mandate, not the exception? 

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