Brand safety and ad fraud among advertisers’ top concerns: WARC

Programmatic channels account for 70% of digital spending, underscoring the importance of placing ads next to appropriate content.

Brand safety and ad fraud will define programmatic advertising over the next year, according to a new WARC report, which explores the top concerns of industry experts, as well as the trends that will shape the industry in the next 12 months.

The report is based on a survey with 100 programmatic experts, including advertisers and agencies, conducted in collaboration with B2B market research specialists NewtonX, and supported by expert commentary and external research.

WARC found that programmatic channels, which account for more than 70% of digital spending, play an important role in helping advertisers reach their marketing objectives. Two-thirds of advertisers and agencies surveyed say they are satisfied with programmatic advertising’s contribution to business results, and 15% are confident that today’s programmatic and adtech capabilities will meet their future needs.

However, more than half (60%) are concerned about brand safety and the risk of their ads appearing alongside unsafe content. The majority said that in the following year, there will be an increase in low-quality websites and AI-generated junk material, increasing the risk of ad fraud and brand safety breaches.

Linked to that concern is the desire to improve ad verification capabilities. Fifty-six percent selected improving ad verification capabilities as one of their top priorities, as well as improving data quality (55%).

The study also showed that advertisers are unprepared for a cookie-free world. Amidst more severe laws, and even if Google will no longer remove cookies from the digital advertising ecosystem, marketers are struggling to adjust to a world in which third-party cookies play a reduced role, WARC says. Some 52% are concerned about the possible removal of third-party cookies in the future.

First-party data is the most popular post cookie solution, according to the survey. Three-quarters of respondents are focusing on collecting authenticated source data, with more than half (51%) highlighting visibility and measurement accuracy as an issue.

Meanwhile, some 9% are concerned about the lack of transparency in the sector. Respondents are confident in the transparency they get from their programmatic investments, but are concerned about the complexity and opacity of the media supply chain.

And emissions reduction is not a priority for most companies, according to WARC. Nearly two-thirds (59%) of agencies and advertisers surveyed say that reducing the emissions generated by programmatic advertising is not a priority for their organization. Less than one-third (31%) say they have adopted a framework to measure the carbon emissions of their digital advertising, and another third (34%) have not taken any steps to reduce the carbon impact of their programmatic advertising campaigns.

Finally, WARC found that the open web is on the decline. Despite the fact that the open web is the most popular place for the public to spend its time, respondents report that investment in walled gardens is increasing. Three-quarters of respondents (76%) say they spend just 40% or less of their budget on advertising on the open web.