The British association ISBA has examined the distribution of advertising budgets – and called for more transparency. In online advertising, for example, only half of the expenditure goes to publishers.
The auditors at Price water house coopers have examined the distribution of advertising budgets on behalf of the British association ISBA and have come across quite a mess. Specifically, the study dealt with so-called programmatic advertising. Advertising spaces on websites are auctioned on large marketplaces. One of the most important results: only 51 percent of the expenditure on online advertising ultimately reached the publishers.
Online advertising: part of the budget “disappears”
Also interesting: for 15 percent of the advertising expenditure, despite intensive research, it was not possible to determine where the money was going, as heise.de reports . Advertising budgets with a total volume of 100 million pounds from clients such as Shell, Walt Disney and Vodafone were analyzed. The auditors were also able to view the relevant documents from publishers, advertising agencies and adtech service providers such as Google or Amazon.
In addition to the 51 percent for the publisher, according to the study, seven percent of the budget went to advertising agencies. A further ten percent of the total expenditure will therefore go into the technical processing and operation of the ad server. Another 18 percent go in the form of fees from advertisers and eight percent from publishers to service providers, including the operators of the marketplaces on which publishers offer their advertising space. One percent of the total advertising budget makes up a technology fee, as the auditors have calculated.
ISBA criticizes “hole in the value chain”
According to the study, the fact that it was not possible to determine the whereabouts of the remaining 15 percent is due to incompatible data formats. The definition of what size should be considered an advertising call also made the research more difficult. Moving advertising campaigns between platforms also makes tracking virtually impossible. Because of this “hole in the value chain”, the ISBA association called for more transparency in advertising trade.