Programmatic Transparency:
Navigating the Pitfalls of Digital Media Buying
Table of Contents
Transparency has long been a buzzword in programmatic advertising, yet the challenges around its implementation continue to trouble advertisers. With complex supply chains, hidden fees, and a lack of clarity in media buying processes, programmatic transparency has become a necessity for advertisers aiming to maximize ROI and maintain trust with their audiences.
At IndieAd, we had the chance to sit down with Christoph Berg – who was, at the time of this conversation, CEO of Mint Square – to shed light on programmatic transparency and its potential pitfalls. Originally presented in our podcast, this article dives into understanding the true cost of media to empower advertisers with better tools. This discussion offers actionable insights for navigating the murky waters of programmatic advertising.
Why Programmatic Transparency Matters
Advertisers often lack visibility into how their budgets are allocated in the programmatic ecosystem. Christoph highlights that while programmatic platforms offer incredible reach and targeting, they can also create opportunities for inefficiencies.
“Programmatic transparency is not just about knowing where your ads are running,” Christoph explains. “It’s about understanding every component of the media supply chain – from fees to targeting decisions – so advertisers can ensure their investments deliver real value.“
Pitfalls in Programmatic Transparency
While transparency is a shared goal, several pitfalls often undermine it:
- Hidden Fees:
Many advertisers are unaware of the layered fees in the programmatic process, including platform fees, data costs, and agency commissions. Without clarity, these fees can quickly erode ROI. - Lack of Data Control:
When advertisers rely solely on agencies for programmatic buying, they often lose access to valuable campaign data. - Opaque Metrics:
Metrics like CTR or CPM can be misleading if not paired with insights into viewability and audience quality.
Christoph emphasizes the importance of owning your programmatic licenses: “Licensing your DSP account is a critical step for achieving programmatic transparency. It ensures advertisers own their data and can switch partners without losing historical insights.“
Transparency in programmatic is like Walter White trying to track every dollar of his operation - it’s critical to know exactly where your money is going and ensure there’s no funny business happening behind the scenes.
The Role of Education in Achieving Programmatic Transparency
Knowledge is power when it comes to navigating programmatic advertising. Christoph advises advertisers to invest in education and build internal expertise:
- Train your teams to understand key programmatic metrics and technology
- Evaluate your partners based on their transparency practices, including how they disclose fees and manage campaigns
- Test hybrid models, combining in-house oversight with external agency support to maintain accountability
“Transparency begins with understanding,” Christoph says. “Advertisers who invest in programmatic education can make smarter decisions and hold their partners accountable.“
Why Advertisers Need to Act Now
The programmatic landscape is evolving rapidly, with increasing focus on issues like data privacy and fraud prevention. Achieving programmatic transparency today can position advertisers for long-term success.
As Christoph points out, “Transparency isn’t just a trend; it’s a requirement. Advertisers who prioritize it will see stronger results, greater trust, and better partnerships.”
Final Thoughts
Programmatic transparency is a game-changer for advertisers navigating the complexities of digital media. By licensing their own platforms, educating their teams, and demanding transparent reporting, brands can unlock the full potential of programmatic advertising.
>> PERSONAL COMMENT OF INDIEAD'S CEO <<
This is one of the “hidden secrets” of the programmatic industry or media in general.
If you’re a brand in Germany and you use an agency for your media buying, regardless of what they call it, there is a high chance that your agency is ripping you off.
We at IndieAd offer audits for companies. Those audits include in-house advertising accounts (usually Google ads, meta ads, LinkedIn ads, etc.), as well as their agency contracts and agency-provided media. Shockingly, We’ve found out that from every 1 EUR that clients pay agencies for media, less than 50% of it is actually invested in media, sometimes even down to 10%-15% only. The rest is “lost” in the supply chain and ends up in the agency’s (or one of its subsidiaries) pockets.
Whether you always had a feeling about it or you’re 100% confident that your agency is transparent, you should invest in getting an audit. The larger your budget is, the more money you can save. Imagine being able to re-invest 50% of your budget to increase results or save 50% of it without dropping on any KPIs.
Feel free to reach out via IndieAd to discuss this topic. It’s sensitive, I know, but it’s too costly to ignore!
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