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The pendulum swings: Balancing transparency with efficiency and ROI | MarTech Today

How far the transparency pendulum swings will depend heavily on the type of transparency in question. Calls for transparency fall into a few camps. One is the service side, needing to better understand advertising inefficiencies, such as ad fraud, viewability and phony “custom” solutions.

Another, the pricing side, includes the desire for insight into the fees, markups and bundles levied by ad tech vendors and other intermediaries. (Meanwhile, the European General Data Protection Regulation, going into effect in May, is driving greater transparency for consumers in the EU, who will need to understand and consent to every use of their personal data for ad targeting.)

Advertisers need to understand how much inherent or improper inefficiencies, such as ad fraud, viewability and customization, actually affect campaign performance. Only by specifically quantifying those losses will advertisers gain a clear understanding of service value.

Fees, markups and bundles
Separate from the service-side debates is the call for greater transparency into pricing structures. Everyone is looking more closely at the cut each party along the line is taking.

The area of fee transparency will be the most interesting one to watch, as it relates to the current swing of the pendulum. The call for disclosure is understandable. But it’s also the area where transparency is less likely to result in changes with regard to the way advertisers spend media dollars, though the discovery of malicious deception in the industry could increase the likelihood such disclosures.

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The pendulum swings: Balancing transparency with efficiency and ROI – MarTech Today.

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