I was talking to a friend of mine recently who runs a major national brand. We were talking about the perils of running brand ads online. His concern was that he didn’t have the ability to really understand where his ads were being placed or whether they were being seen by the right audience. The folks at Mpire rolled out a service last year called AdXpose. It asks as sort of the “Omniture for online advertising.” Its an all-in-one solution to provide brand verification and campaign optimization for online ads. The team put together a research white paper that you can request here that shows over 50% of online advertising is being wasted.The chart below looks at the cost of delivering an ad impression. As you can see for a standard $1.00 CPM remnant ad the cost of delivering it is typically .$10 when you load in all of the manual cost and technology. This is basically a fixed cost so a higher CPM brand campaign ($10-$40 CPM ad) barely feels this cost. Knowing that there is so much waste in advertising today – brands and agencies are starting to figure out that they have to tackle transparency and accountability. The price of this brand protection is relatively small especially considering that there is so much waste. Plus, the opportunity cost is huge since there is so much upside in having consumer brands move their budgets online. If you no that 50% of your advertising is being wasted and/or harmful to your brand, then it would seem to make sense that you'd want to track your campaign(s) with a microscope.
A recent PriceWaterHouse Coopers study indicated that nearly 1 in 3 ads is never even seen because they are below the fold. Today, only 7% of the global US media budget is spent online. 80% of that volume is distributed thru indirect channels like ad networks or ad exchanges. The answer to the question on what is the price that a brand manager would be willing to pay for brand protection – its priceless.