The recent study by the ANA into lost value through the programmatic supply chain creates alarming headlines for the industry, concluding at least 64 per cent of programmatic media investment is not actually reaching the consumer.

As the report concludes, despite the confronting research, a reaction of substance from the industry is unlikely. Those businesses that are beneficiaries of the ‘gravy train’ see no upside in driving change. And for the brands that fuel it, the ‘mountain to climb’ feels so big that it remains firmly in the too-hard basket.

And so, the industry trundles along – accepting what is, objectively, an unacceptable operating model.

So, is there actually a constructive way to move forward? Or will the findings of this latest report ignite a level of industry debate and consternation before fading away until the next exposé into the lack of transparency and accountability in advertising.

The ANA report offers a well-argued ‘playbook’ on how advertisers might start to improve the effectiveness of their programmatic spend. Each recommendation makes sense and is worth consideration. Each will shift the dial on programmatic investment. Marketers and their agencies should read the report – all 125 pages of it – and work out where improvements can be made. It’s genuinely helpful and the upside could be significant.

But, given the quantum of the issue, should the response from marketers be more profound? It feels there is a legitimate argument that marketers should be pausing programmatic investment until its value is clearly explained and justified. In many cases programmatic has become the default option remaining largely unchallenged with investments rolling from year to year. It does some things really well, but it certainly isn’t the only option. And as the ANA report clearly articulates, it makes a lot of money for a multitude of companies along the chain.

Smart brands and their agencies already get this.

Smart brands and agencies remain focused on the fundamental drivers of value – marketing activity is only valuable if it delivers the benefit you want, at a price you can justify paying. Smart brands and agencies obsess over the basics – develop a clear, focused strategy and then execute it in an aligned, transparent, objective, and accountable way. Smart brands and agencies ensure they operate within a commercial framework that rewards the right behaviours with real and sustainable incentives.

It is obvious. It is simple. And very few would disagree. But as an industry, we’ve got ourselves into a position where operating this way is the exception rather than the rule, where we’ve lost sight of where real value is created and become fixated on optimising our media investment against incorrect parameters.  

Programmatic may have an important and evolving role on a marketer’s media plan. But the ANA provides enough evidence to suggest marketers who are not completely satisfied that their programmatic investments are working in their best interest, should stop investing until they are.