The more intermediaries the chain has, the more a business can expect to pay in commissions. Before an ad reaches a user, it is processed by an endless number of intermediaries: media agencies, demand-side platforms (DSPs), data management platforms (DMPs), ad exchanges, ad networks or supply side platforms (SSPs), etc. The number of intermediaries required to serve an ad campaign means that businesses must pay charges, fees and hidden costs on both the demand and supply sides. Advertising industry experts find it nearly impossible to understand how funds are allocated, while the small-business owner is locked out from that information. Finding out how this is done is nearly impossible. According to the IAB, publishers receive only 45 percent of payments from programmatic technologies. Ad tech vendors take almost half of every dollar that goes to an ad campaign. In-house marketing. Previously considered as a costly and complicated solution available only to big brands, it is now possible for small companies to use in-house marketing solutions to nourish their own marketing. Related: How to Make Sure You're Spending Your Money on the Right Digital Ads for Your Business Blockchain-based platforms.
Hidden fees and charges are making holes in your advertising budget. Is there a way to avoid that?
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Marketing encompasses countless channels, activities and resources. In the long run, matching each to a return on investment and determining if any of them produce sales becomes a huge burden. As a result, many businesses go on a fruitless search for fair and transparent marketing solutions.
Related: A New Way to Examine and Tackle Mobile Ad Fraud
Initially, a brand enters a market swarming with opportunities, which results in great uncertainty. In such circumstances, mimicking the marketing model of prominent businesses appears to be the most realistic approach. Trying to outperform competitors and win the brand awareness crown, brands disperse their efforts across channels, exhausting marketing funds and failing to reach their audience.
Fees, charges and transparency issues
On average, businesses spend promotional funds on inefficient marketing channels, wasting fortunes on social network campaigns, freestyle email and content marketing activities that run without a robust strategy.
The more intermediaries the chain has, the more a business can expect to pay in commissions. Before an ad reaches a user, it is processed by an endless number of intermediaries: media agencies, demand-side platforms (DSPs), data management platforms (DMPs), ad exchanges, ad networks or supply side platforms (SSPs), etc. The number of intermediaries required to serve an ad campaign means that businesses must pay charges, fees and hidden costs on both the demand and supply sides.
When the Guardian bought programmatic ads on its own platform, the newspaper found it received only 30 pence for every pound it spent. That means 70 percent of ad spending goed to advertising networks, resulting in a negative ROI for the ad buyer.
Lack of transparency, inflated prices, hidden commissions, and unfair budget distribution between participants is not new in the ad tech industry. Still, lack of transparency is what many companies want to resolve.
Related: Clicks Are Not the Only Online Marketing Metric and They May Not Even Be the Best
Who gets the money?
Advertising industry experts find it nearly impossible to understand how funds are allocated, while the small-business owner is locked out from that information. Commissions are calculated individually and can depend on countless factors. Finding out how this is done is nearly impossible. Even when fragments of such information reach the demand or the supply side, businesses cannot verify or…
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