{"id":8874,"date":"2024-10-01T14:42:09","date_gmt":"2024-10-01T14:42:09","guid":{"rendered":"https:\/\/tup.kxe.temporary.site\/how-brands-are-handling-the-lack-of-transparency-in-major-ad-platforms\/"},"modified":"2024-10-01T14:42:09","modified_gmt":"2024-10-01T14:42:09","slug":"how-brands-are-handling-the-lack-of-transparency-in-major-ad-platforms","status":"publish","type":"post","link":"https:\/\/okdesign.ca\/fr\/how-brands-are-handling-the-lack-of-transparency-in-major-ad-platforms\/","title":{"rendered":"How brands are handling the lack of transparency in major ad platforms"},"content":{"rendered":"


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In recent years, tech giants like Meta, Google and Amazon tightened their grip on digital media while facing increased scrutiny from consumers and regulators. Beneath the headlines, a key shift is reshaping how brands interact with ad platforms: the growing tension between consolidation and transparency.<\/p>\n

How consolidation and transparency are redefining digital advertising<\/h2>\n

Consolidation is growing due to several factors. Machine learning and AI improvements let platforms automate ads at a large scale with little input from marketers. At the same time, these platforms are protecting their first-party data as privacy concerns and regulations increase. With stricter limits on third-party data, tech giants are tightening control over ad systems.<\/p>\n

This is happening as demands for transparency increase due to several market shifts. Less digital user growth is increasing competition for ad spending. New players like retail media networks<\/a> and connected TV<\/a> (CTV) provide more options for brands to spread their budgets. Additionally, brands are fighting harder to get the most from their ad dollars across more channels, including newer platforms. These factors push major ad platforms to prove their value and give advertisers more control.<\/p>\n

These opposing forces are reshaping the relationships between advertisers and platforms. Campaign structures like Google\u2019s Performance Max (PMax), Meta\u2019s Advantage+ Shopping, Amazon\u2019s Performance+ and TikTok\u2019s Smart Performance Campaigns promise efficiency through automation and artificial AI. However, the accompanying lack of transparency means brands don\u2019t know how effective these are.<\/p>\n

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The rise of consolidation: Efficiency at the expense of control<\/h2>\n

Google\u2019s Performance Max (PMax), launched in late 2021, reflects the consolidation trend. Advertisers have limited control over where ads appear. The AI optimizes based on the advertiser\u2019s goals but hides many controls marketers are used to, like audience targeting or channel choice.<\/p>\n

For many brands, this \u201cblack box\u201d approach feels restrictive. PMax runs ads across all Google-owned media, including unexpected places like Gmail inboxes, which lack the personal touch marketers prefer. Google has reduced access to auction data, making it harder to see how competitors bid. Despite these issues, PMax is essential for tapping into Google\u2019s vast reach.<\/p>\n

Meta followed suit in 2022 with its Advantage+ Shopping Campaigns. Meta overhauled its ad algorithm because of new privacy constraints, particularly from Apple\u2019s mobile changes. Marketers provide inputs like goals, budgets and product feeds and Advantage+ takes over from there. While brands appreciated performance improvements, the lack of transparency mirrored the struggles with Google\u2019s PMax.<\/p>\n

Amazon\u2019s Performance+, launched in 2024<\/a>, is following a similar path. It includes Sponsored Products, Sponsored Brands and Sponsored Display, using shopper data and AI to optimize ad placements with little advertiser input. Amazon tried to differentiate itself by adding the AI-driven upgrades to its DSP and emphasizing it wasn\u2019t changing reporting or attribution<\/a>.<\/p>\n

TikTok, with its Smart Performance Campaigns, also entered this space by automating optimization across its short-form video platform, offering advertisers rapid scale with limited input.<\/p>\n

Dig deeper: <\/em><\/strong>Is the digital marketing grass really greener in walled gardens?<\/em><\/strong><\/a><\/p>\n

How brands have responded<\/h2>\n

Many brands are responding to this in one of three ways.<\/p>\n

1. Advocating for transparency<\/h3>\n

Brands have long called for more visibility into campaign drivers and performance metrics. The lack of granular data makes it difficult to analyze what is driving success or failure. Leaving them feeling their investments are being managed by inscrutable algorithms. Direct feedback to platforms is an ongoing effort as brands push for more detailed reporting and greater control.<\/p>\n

2. Diversification of media spend<\/h3>\n

Many brands moved away from relying solely on the \u201cblack box\u201d of major ad platforms by diversifying their media spend. The rise of alternatives like streaming video and connected TV (CTV) accelerated this shift, offering broad reach and more measurable results.\u00a0<\/p>\n

As ad budgets expand to include CTV, Amazon\u2019s growth as a major advertising player also provides more options beyond Google and Meta. Growing platforms like retail media and digital out-of-home (DOOH) offer even more opportunities, allowing brands to develop more varied and accountable media strategies.<\/p>\n

3. Smarter measurement<\/h3>\n

With less transparency from ad platforms, brands need to strengthen their measurement capabilities. Sophisticated media mix modeling (MMM), frequent experimentation and incremental testing are critical. Brands must build their own \u201csource of truth\u201d to measure the effectiveness of their media investments independently. This creates a counterbalance to the performance metrics reported by the platforms.<\/p>\n

Developing robust measurement capabilities drives accountability, ensuring platforms deliver on the business outcomes they claim to influence.<\/p>\n

Dig deeper: <\/em><\/strong>The marketing black box: Why radical transparency is key<\/em><\/strong><\/a><\/p>\n

Green shoots of transparency: Are platforms listening?<\/h2>\n

Platforms promised better performance because of consolidation \u2014 hoping that would outweigh the loss of transparency and control. Many advertisers, especially those with savvy measurement strategies, argue performance just hasn\u2019t materialized. Even when consolidated campaigns do perform, some brands and agency partners don\u2019t feel the tradeoff is worth it for other reasons, including brand safety concerns.<\/p>\n

There are encouraging signs platforms are starting to listen. Meta recently announced<\/a> its intention to integrate \u201cSource of Truth\u201d bidding, kicking off with Google Analytics<\/a> and attribution provider Northbeam. This may give brands more visibility into how campaigns are being optimized. While these changes are still in their infancy, they suggest consistent feedback from advertisers is beginning to make an impact.\u00a0<\/p>\n

Last month, Google announced<\/a> new features in Performance Max to allow for campaign-level negative targeting to give brands more control. Amazon\u2019s Performance+ made a point to include ad format toggle controls \u2014 seemingly in response to advertisers\u2019 concerns.\u00a0\u00a0\u00a0<\/p>\n

The tension between consolidation and transparency remains a defining challenge in digital advertising<\/a>. To push for greater control and transparency, brands must:<\/p>\n