Cutting through the clutter: strategies to eliminate ad wastage in programmatic buying

A groundbreaking study by the ANA’s Programmatic Media Supply Chain Transparency initiative revealed a shocking statistic: of the $88 billion spent on open web programmatic advertising, an estimated $22 billion—one in every four dollars—is wasted. Even more concerning, only about 36% of the total spend reaches the intended audience. This highlights a critical opportunity for advertisers to optimize their strategies, reduce inefficiencies, and maximize the value of every advertising dollar.

Contrary to the misconception that ads must be hyper-personalized or overly complex to succeed, simpler ads paired with contextual targeting can yield outstanding results. The key lies in minimizing ad fraud, leveraging transparency, and deploying strategies that ensure your ads reach the right audience efficiently.

Drawing from extensive industry experience, here are 11 proven strategies to reduce ad wastage, combat fraud, and improve the effectiveness of your programmatic campaigns:‍

1. Identify and Exclude Made-for-Advertising (MFA) Websites

‍MFA websites are designed purely to generate ad revenue, often delivering negligible value to advertisers. Regularly review the list of apps and URLs in your demand-side platform (DSP) and exclude these low-value sites. Tools like DoubleVerify and DeepSee can assist in identifying and blocking MFA sites, ensuring your budget is spent on platforms that deliver meaningful results.‍

2. Prioritize Trusted Sellers

Whenever possible, purchase inventory directly from authorized, trusted sellers. Resellers often inflate costs through unnecessary markups and contribute to longer supply chains, which increase inefficiencies and carbon emissions. Trusted sellers provide greater transparency and are less likely to engage with MFA sites, improving both campaign performance and sustainability.‍

3. Use Inclusion Lists for Targeted Campaigns

To enhance targeting, start with an inclusion list of high-quality websites. For example, focus on the top 500 to 1,000 websites with strong organic traffic and user engagement. These platforms often host higher-quality content and deliver better campaign outcomes.‍

4. Leverage Ad Verification Tools

Maximize the ad verification features available in your DSP. Enable brand safety filters to prevent ads from being served to invalid traffic (IVT) or non-viewable inventory. These tools protect your budget while safeguarding your brand’s reputation.‍

5. Regularly Evaluate Quality Benchmarks

‍Ensure your ads consistently meet key quality benchmarks, including brand safety, viewability, and invalid traffic standards. Conduct periodic performance reviews and adjust campaigns as needed to maintain these benchmarks.‍

6. Pre-Evaluate Inventory in Private Marketplace (PMP) Deals

Before running PMP deals, evaluate the inventory to ensure it aligns with your campaign goals. Avoid sites that host low-value content or MFA practices, and verify that the inventory meets your brand safety and performance standards.‍

7. Optimize Transparency in DV360

In Google DV360, reduce wasted impressions by excluding confidential sellers and non-transparent inventory. Utilize the "Non-Reportable Sites and Apps" feature at the advertiser level to automate this process across all line items, saving time and improving efficiency.‍

8. Reduce Carbon Emissions Through Smarter Buys

‍Longer supply chains not only waste budget but also contribute to higher carbon emissions. Focus on direct media buys with reputable publishers to improve campaign efficiency and minimize environmental impact.‍

9. Use Attention as a Core Performance Indicator (KPI)

‍Move beyond traditional metrics like CTR and incorporate attention as a key performance indicator. Ads that drive high interaction and exposure are more likely to resonate with your audience, delivering stronger recall and engagement.‍

10. Regularly Audit In-App Inventory

‍In-app inventory often carries higher risks of fraud and bot traffic. Evaluate the apps your ads appear on, especially those with unusually high click-through rates. Metrics like attention and engagement can provide a more accurate measure of success.‍

11. Maximize Viewability

‍Ensure that the majority of your ad impressions are viewable. Ads that aren’t seen by users won’t drive results, regardless of targeting quality. Regularly monitor and optimize for viewability to maximize the impact of your campaigns.

Conclusion: Building an Efficient and Sustainable Programmatic Ecosystem

Programmatic advertising offers immense opportunities for scalability and precision, but it also presents challenges, including ad fraud, budget inefficiencies, and environmental concerns. By adopting a proactive approach that prioritizes transparency, leverages high-quality inventory, and optimizes for meaningful KPIs like attention, advertisers can significantly reduce waste and achieve measurable outcomes.
Implementing these best practices not only ensures better campaign performance but also contributes to a more sustainable advertising ecosystem. The future of programmatic lies in smart, data-driven decisions that balance business goals with responsible media buying practices.