Interesting article from AdExchanger on the high cost of ad tech, which can sap up to fifty-cents of every dollar of an advertiser’s digital media investment. The author, of the article shares an interesting view, positioning an advertiser’s ad tech investment as a “value.” While this perspective of ad tech and its related costs is certainly partly true, so is the author’s acknowledgement that not all of the associated costs for ad servers, DMPs, DSPs, SSPs, exchanges, brand safety and fraud protection and the like are “sound.”
Perhaps as importantly, when it comes to wringing the inefficiency out of the digital marketplace, the biggest barrier to cost reduction and a move toward a “value” position is the lack of visibility and therefore the challenge of quantifying buy side and sell side costs. Over time will ad tech costs come down? Likely yes as advertisers continue their drive to improve transparency and pare down the number of intermediaries between them and the seller, necessary steps toward achieving a value-based label for ad tech … Read More