auditing programmatic furlanetto harrison nov 10 2016

Auditing Programmatic Nene Harrison / Paola Furlanetto Nov 10, 2016

Auditing Programmatic

Goal Programmatic: what Advertisers can do to be Audit-Proof

Contents •  5 types of media audit categories •  How media audit categories apply to programmatic •  Most common issues in programmatic •  Issue, Solution, Prevention •  Arbitrage: what can be done •  The Audit-Proof Advertiser: 7 Golden Rules •  Q&A

Presenters Paola Furlanetto & Nene Harrison


Compliance

Procedure Check

5 Types of Media Audit Categories

Benchmarking Performance Over Time

Accuracy Check

Comparison

Consistency Check


5 Types of Media Audit Categories


Media Auditing – a Traditional View

Approach Types Details Examples

Comparison

Compliance1. Existing rules or law Alcohol, financial, kids etc2. Commitment Contract, pitch guarantees

etc

Benchmarking

3. Vs an average/ a norm (Norm is based on pool of advertisers selected before the analysis). Both cost and quality should be part of the audit

Typical TV audit

Performance over time

4. Actual vs previous year’s performance Frequently part of company dashboard. An auditor may be needed for normalization (format, target etc)

5. Actual vs Objectives (typically it requests some normalization to be agreed)

Consistency check

Procedure check6. It applies either to a work flow or a document. Checking if all necessary steps are performed properly

Work flow between agency and the advertisers

Accuracy check 7. Facts and figures are checked, to be sure they are consistent Pitch presentations


Media Auditing – a Programmatic View


Most Common Issues


Technology •  Fraud

•  Ad verification differences

Media Exposure •  Viewability

Political •  Conflict of interest

•  First party data usage

Economical •  Overall cost

calculation •  Arbitrage

Common Issues


Issues, Solutions, Prevention


Issue #1: Fraud

Key issue: Impressions not served to human users

Requirement & cost: Implement an ad verification tool

Impact on advertiser: Up to 40% wastage depending on publisher / inventory source

Solution: Blocking / reimbursement

Prevention: Publisher / agencies which supply media with fraud are banned


Issue # 2: Inconsistent ad verification methodologies

Key issue: Range of vendors each with different methodologies

Requirement & cost: Detailed investigation of platform capabilities, beginning with IAB / MRC accredited vendors

Impact on advertiser: Vendors reported viewability can vary by up to 25% for the same set of inventory

Solution: Review of available vendors

Prevention: This is an industry-wide issue requiring further research & regulation


Issue # 3: Lack of operational transparency

Key issue: A complex ecosystem - agencies planning AND selling media, with vendors selling AND delivering media

Requirement & cost: Advertisers should ensure that they have full knowledge of the media landscape

Impact on advertiser: Varies by advertiser

Solution: Request all players to disclose all financial interests in the digital & ad tech ecosystem

Prevention: Contract negotiations and pitches are an opportunity to make clear that you do not accept arbitrage or lack of transparency. Industry bodies can also provide support.


Issue # 4: Lack of commercial transparency

Key issue: Agencies group together costs for media, data, technology & staff

Requirement & cost: There is no cost for asking the right questions!

Impact on advertiser: Varies by advertiser

Solution: Demand full transparency from your media partners

Prevention: Ongoing negotiation with the agency. Many agency groups have made alternative transparent models available.


Issue # 5: Undeveloped first-party data usage

Key issue: Using unique first-party data to enhance media effectiveness

Requirement & cost: Data management technology and resource

Impact on advertiser: Varies by advertiser (but we have seen evidence of 12% improvements in media effectiveness)

Solution: Implement technology to gather, harmonise and leverage your own first-party data

Prevention: Prevention is based on a strategy to find the perfect balance between risk and benefit


Issue, Solution, Prevention - summary

Issue Involving Requirement & cost Impact on advertiser Solution Prevention

(the hard way)

Fraud Impressions not served to human

Ad verification tool

Up to 40% wastage depending on publisher /inventory source

Blocking / reimbursement

Publisher / agencies which supply media with fraud are banned

Inconsistent ad verification methodologies

Range of vendors each with different methodologies

Investigation of platform capabilities, beg-inning with IAB / MRC accredited vendors

Vendors reported viewability can range by up to 25% for the same set of inventory

Review of available vendors

Industry-wide issue requiring further research & regulation

Lack of operational transparency

Complex ecosystem - agencies planning AND selling media, vendors selling AND delivering media

Full knowledge of the media landscape Varies by advertiser

All players to disclose all financial interests in the digital & ad tech ecosystem

Contract negotiations and pitches to make clear that you do not accept arbitrage or lack of transparency. Industry bodies provide support

Lack of commercial transparency

Agencies group together costs for media, data, technology & staff

No cost Impact of lack of transparency unknown

Full transparency

Ongoing negotiation with the agency. Some agency groups have made alternative transparent models available.

Undeveloped first-party data usage

Using unique first-party data to enhance media effectiveness

Data management technology and resource

Varies by advertiser (evidence of 12% improvements in media effectiveness)

Find the best ways to gather, harmonise and leverage your own first-party data

Prevention is based on a strategy to find the perfect balance between risk and benefit. (see data in econometric model)


Arbitrage - what can be done?

Contract Associations Multinational approach

+ Deal


7 Golden Rules


7 Golden Rules for Audit-Proof advertising 1 Your campaigns are fraud-free

2 You protect your own data AND use it to inform marketing decisions

3 You have full knowledge of your programmatic technology, including all verification, audit and ancillary costs

4 Your invoices show detailed cost breakdown (media, service, technology & data)

5 Your campaign KPIs are in line with your marketing objectives

6 You have viewability targets that your agency and publishers have guaranteed to deliver, and regularly check them

7 You have a clear view of your programmatic performance relative to other channels

And…You are aware of your agency’s conflicting competencies. And accept them or move towards new contract / solutions / supports


Buon lavoro Thank you

auditing programmatic furlanetto harrison nov 10 2016

Marketing