The recently released Adalytics report has triggered caution among media buyers and advertisers. Uncertain about its full impact, digital experts advise heightened vigilance and careful ad budget allocation for digital platforms.
There is also emphasis on heightened vigilance as the findings of the Adalytics report point out how advertisers including Fortune 500 brands, and many small businesses may have been misled for years about Google’s proprietary TrueView skippable in-stream video ads.
Do Indian digital agencies believe that Adalytics’ findings are accurate?
“I believe that Adalytics’ findings are close to accurate, considering they are a common unbiased body that reported independent findings. The report found that Google was placing TrueView ads on low-quality websites where they were unlikely to be seen. This is a problem because it means that advertisers are paying for ads that are not being seen by their target audience,” said Ambika Sharma, Founder and MD at full service interactive, digital communications and technology agency, Pulp Strategy.
As the findings of the report put data accuracy and transparency in the spotlight, it has prompted industry players to be meticulous in their decisions regarding ad investments.
“The Adalytics report has raised concerns about the value of TrueView ads, and advertisers should scrutinize closely where their ads are being placed and what they are getting as ROI. We are helping them do that,” said a media buyer who did not wish to be named.
Adalytics, a browser extension which claims to be working to improve ad targeting and consumer data collection in its report said, for years, significant quantities of TrueView skippable in-stream ads, purchased by many different brands and media agencies, appear to have been served on hundreds of thousands of websites and apps in which the consumer experience did not meet Google’s stated quality standards.
For example, many TrueView in-stream ads were served muted and auto-playing as out-stream video or as obscured video players on independent sites. Often, there was little to no organic video media content between ads, the video units simply played ads only.
Ad tech experts offer differing perspectives on the Adalytics report.
“It’s possible that some media buyers and advertisers may become more cautious in the short term due to the concerns raised in the report. However, it’s also worth noting that TrueView ads have been a preferred choice for advertisers for many years due to their effectiveness. The user-focused model of Google’s advertising, which targets ads based on user behaviour and preferences, has proven successful. Therefore, while there may be some initial wariness, it’s likely that many advertisers will continue to use TrueView ads, albeit with a more informed approach,” said the founder of an ad tech solution company in India.
Is Google’s dominance in digital ad revenue share set to decline?
As per reports, Google, Facebook, Hotstar, Amazon, Myntra, and Flipkart clocked close to Rs50000 crores worth ad revenues from Indian advertisers in financial year 2022 but will the findings of the Adalytics lead to a dip in Google’s share in the digital ad revenues?
“It is difficult to say whether Google’s dominance of the digital ad revenue share will finally go down. Google has a very large network, and this is one part of the network, the ecosystem is so large that finding an alternative will take more than a while. However, the Adalytics report has highlighted the problems with Google’s ad network, and it is possible that this could lead to advertisers shifting a part of their spending to other networks or alternate formats,” said Sharma.
“It is also likely that Google will be swift to make enough of a change to address concerns and prevent an exodus. This is not the 1st time concerns have been raised. In 2017, a report by the Norwegian Consumer Council found that Google was placing ads on websites that contained malware,” she added.
Sources close to developments in the space say Google is already working with Interactive Advertising Bureau (IAB) and have started taking steps in rectifying these issues.