50% of advertising spend gets lost in programmatic supply chain, never making it to publishers

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 07, 2020, 9:59 AM GMT+0

The study into the supply chain of advertising was conducted by the Incorporated Society of British Advertisers (ISBA).

Around half of the money spent online by advertisers goes to the programmatic supply chain middlemen and never reaches the publishers, as per the report. Also, 15% of the monies spent by advertisers was completely untraceable for the researchers.

Phil Smith, director-general at ISBA says, “As you start to break down the value chain for the impressions we have matched, the erosion of value is really significant”. Nigel Gwilliam of Institute of Practitioners in Advertising suggests achieving greater data standardisation and transparency across the adtech ecosystem.

The research involved 15 advertisers including Disney, Nestle, and Unilever along with eight agencies, 12 publishers, and five DSPs, and six SSPs. Nearly £100 million of UK programmatic media spend was studied.

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