ComScore has released a white paper titled 'The Economics of Online Advertising: How Viewable and Validated Impressions Create Digital Scarcity and Affect Publisher Economics'.
The paper examines the ways in which the current oversupply of online ad inventory is weighing down the economics of the industry - and inhibiting the flow of marketing dollars to the digital medium.
“Some of the unfortunate by-products of the online ad ecosystem’s aggressive innovation have been an increase in the complexity of campaign delivery and a virtually unlimited supply of inventory, both of which contribute significant waste to the buying and selling processes,” pointed out, Magid Abraham, president and chief executive officer, comScore, author of the paper.
“We believe that moving the industry toward a ‘validated impression’ standard introduces an element of digital scarcity that helps match the value flowing to publishers and advertisers with the value being delivered by the impression. By bringing the forces of supply-and-demand in online advertising into greater alignment, we introduce value to the ecosystem, accelerate the flow of ad dollars to digital, and foster a win-win environment for all stakeholders,” he explained.
The white paper explains the use of 'validated impressions' – defined as impressions that have an opportunity to be seen, are delivered in the correct geography, among brand safe content, and with non-human traffic removed – as the input into campaign measurement, which can deliver value for key stakeholders.
The paper notes that publishers win because advertising on their site is more effective and more fairly valued. Specifically, they can use validated impression data to unearth undervalued inventory and re-set pricing accordingly.
It argues that agencies win because they are able to demonstrate better results to the client, offer better advice on media plans and spending allocations, and benefit from a clearer indication of which strategies and executions are actually contributing to brand lift.
The paper also points out that advertisers win because they have a more accurate picture of online campaign performance and can therefore make better business decisions and allocate spending accordingly.