When it comes to digital advertising, many advertisers spend money without knowing what they spend it on. That’s why advertisers need to demand transparency. Digital advertising transparency primarily means knowing what’s happening with your campaigns.
We’re talking about seeing the breakdown of where your money’s spent, understanding how your audience is being targeted, and getting real, honest performance numbers—not the bot-boosted ones.
Right now, many things are unclear in the digital ad ecosystem. Hidden fees, confusing metrics, and “black box” targeting make it tough to know if you’re getting your money’s worth. And that’s not even mentioning brand safety issues or data privacy concerns.
It’s a mess. In this article, we’ll outline the various forms of transparency and explain why marketers need to demand it from their partners.
Types of Transparency that Digital Advertisers Ought to Demand
There are many forms of transparency that you should demand as a digital advertiser. But here are the most essential ones:
Data Transparency
Targeting data from third parties is common when using a programmatic buying platform like a demand-side platform (DSP). On the surface, however, such data is not very transparent. For example, you may see a targeting segment labeled “Single Parents.”
But where was the data collected? How accurate is the label (i.e., was it declared or inferred)? When was it collected (i.e., how fresh is the data)?
You have a right to know. Demand transparency about data sources, audience segmentation methods, and data privacy practices. This is essential for campaign effectiveness and compliance with regulations like GDPR and CCPA.
Inventory availability
Before now, it was nearly impossible to get transparency into the site where your ad campaign will be published. The ad networks protect their publisher relationships so they usually obfuscate the actual publishers by bundling them into thematic categories, such as “Health and Fitness,” “Technology,” or “Finance.”
Additionally, it was difficult to get any data about the availability of impressions on specific placements. From a technical standpoint, the introduction of real-time bidding (RTB) and programmatic advertising has fixed this problem. With these new technologies, advertisers can see the exact domains where their ads will run.
The only challenge now is that not every Adtech platform or agency offers such information. However, you should ask for access to this data where possible. Don’t settle for broad categories; you need specifics. “Automotive inventory isn’t enough. You need to know which automotive websites, which sections of those sites, and even which specific ad placements within those sections are available.
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Cost Transparency
An essential aspect of transparency is knowing how much of your advertising budget goes toward promotion and how much goes to the ad platforms from which you’re buying such media.
As an advertiser, you want to know how much of your budget goes toward “non-working” expenditures so that you can reduce or keep it at a reasonable level.
Not knowing the amount spent on fees and media keeps you at the mercy of your ad vendor. Fees could be eating deep into your ad spending without you knowing. Preferably, you want to know the fees upfront before starting.
Therefore, demand a detailed breakdown of your ad spend, including platform fees, agency commissions, and any other costs. Don’t be afraid to ask questions about anything that seems unclear.
Performance Metric Transparency
Are those “viewability” numbers real? Or are they inflated by bots? Demand clarity on how your campaign performance is being measured. Ask for detailed explanations of the metrics being used, the methodologies behind them, and how they’re being validated. Beware of vanity metrics and focus on the numbers that matter to your business goals.
During the ad network days, it was difficult to get this information. But with programmatic buying technology, there is no reason you shouldn’t get extremely detailed reporting about where your ads are running (down to the placement) and how they are performing.
The Benefits of Demanding Transparency
Image by StartupStockPhotos from Pixabay
Demanding transparency in your digital advertising offers several benefits that can impact your business. Here’s how demanding transparency benefits your business:
Increased Return on Investments
Transparency allows you to see exactly where your money is going and the results it’s generating. With a clear understanding of which placements, data sources, and targeting methods are performing best, you can optimize your campaigns, eliminate wasteful spending, and boost your return on investment. It removes the guesswork and enables you to make data-driven decisions.
Improved Brand Safety
Imagine your ad showing up next to offensive or inappropriate content. It’s a Nightmare scenario, right? Transparency helps you avoid these situations by giving you visibility into where your ads are being placed. You can proactively identify and exclude risky websites or content categories, which protects your brand reputation and ensures your message is seen in the right context.
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Better Decision-Making
Knowledge is power. Access to clear and comprehensive data empowers you to make informed decisions about your campaigns and overall advertising strategy. You can identify trends, understand audience behavior, and make adjustments in real time to optimize performance. No more relying on gut feelings – just data-backed insights.
The benefits of transparency in advertising are undeniable. Therefore, demanding transparency in digital advertising is no longer optional, it’s an essential move to help you increase return on investment (ROI), improve privacy, and build trust. Simply asking for clarity in placement, data, costs, and metrics, will enable you to make informed decisions, optimize campaigns in real time, and drive better results.
