The Trust Deficit in Advertising is Real

The Trust Deficit: Origins and Impacts

Several factors contribute to the trust deficit:

1. Transparency Issues: The term transparency has become a marketing catch all or throw away word by most sellers to the detriment of the industry, Today more often than not, advertisers are unsure about where their ads are really being placed, the audiences used to target them and the actual costs associated with placements (not some arbitrary CPM mired in arbitrage).

2. Ad Fraud: As media types like connected TV and streaming audio gain steam, so too do their CPM's and this makes the environment ripe for fraudsters. Domain spoofing, non-human traffic and click fraud are just a few examples of ad-fraud that are eroding trust.

3. Data Security: Concerns about data breaches and the misuse of consumer information has led to additional skepticism. The natural tendency for ad-tech to not value consumer privacy and violate trust has not helped.

4. Discrepancies in Reporting: Disagreements over metrics, KPIs and reporting methodologies can create tensions and further divide buyers and sellers. In addition, attribution models and naive sellers' desires to take full credit for attribution without any incrementality measurement or score erode trust. The continued challenges with walled gardens and data/measurement have compounded the trust deficit (the latest of course with YouTube recently, but META and Alphabet have both been called to the carpet many times for reporting discrepancies.)

Bridging the Gap: Solutions for the Trust Deficit

1. Embrace Transparency: This one is easier said than done, because if you look at the leading players in the space, all seem to claim transparency in their marketing. If we want to win back trust, both parties must prioritize complete transparency. This involves open discussions about fees, placements and expected outcomes. Technology deployed and how it's deployed, deterministic vs probabilistic measurement, and so much more are part of a true-transparent dialogue and execution. Platforms should provide clear breakdowns of actual media costs plus any other mark-ups or third party fees and placements. This is the most daunting of all topics to tackle. Sellers are quite literally, as the writing of this article hosting webinars on transparency whom are the least transparent the industry can offer (they resell others tech, mark-up inventory costs, arbitrage data - yet because they feel they are displaying the name of the publisher where the ad ran and what they are charging the customer as a CPM, they can claim transparency).

2. Unified Metrics and Standards: Adopting industry-wide standards for metrics and KPIs can alleviate many disputes. Organizations like the IAB (Interactive Advertising Bureau) have taken strides in this direction, but more unified acceptance is needed and frankly control groups with incrementality measurement can help win back trust.

3. Robust Verification and Fraud Detection: Employ third-party per-bid verification services to ensure ads are viewed by real people in appropriate contexts and ideally also additional tech to root out more purposeful fraud like misrepresenting device type is key. This not only helps in minimizing wasted spend, but also in rebuilding trust.

4. Data Protection Pledges: Advertisers and sellers need to commit to stringent data protection standards. Being clear about how data is used, stored and shared can rebuild faith in the ecosystem.

5. Open Communication: Regularly scheduled check-ins, feedback loops and open channels for grievance redressal can foster a better understanding between both parties.

6. Educational Initiatives: Workshops, seminars, and training sessions can help both advertisers and sellers understand the intricacies of the ecosystem, dispelling myths and clarifying ambiguity but they need to be conducted in authentic way, not more BS marketing with spin tactics to suit an individual companies needs versus the industries greater interests.

7. Work with companies that are demonstrating transparency and a willingness to pull back the curtain to prove they are doing what they say they are doing with audits and scrutiny.

A Look Ahead

While challenges persist, consumers are moving to streaming TV and audio at unprecedented rates creating the perfect environment for advertisers of all sizes to reach targeted prospects and customers. Brands as small as a local realtor can use TV to reach home buyers, a solution once only reserved for Fortune 100 and 500 brands. The trust deficit is being taken on by the ANA, TrustNet and other industries who all believe with the right technology, ethics and true transparency, trust will follow.

Both advertisers and sellers stand to gain immensely from such a harmonious relationship. Through concerted efforts, transparency and mutual respect, we can overcome the trust challenges and unlock the full potential of this dynamic advertising landscape.

Posted at MediaVillage through the Thought Leadership self-publishing platform.

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The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.