Mobile advertisers are having to juggle an average five ad technologies and four vendors – lack of transparency key concern

Anne Freier

In Mobile Advertising

December 7, 2016

The digital advertising ecosystem has evolved from a people-based business to a technology solutions landscape. This means that advertisers are having to manage more technologies than ever before. To be exact, they’re deploying an average five tech solutions to purchase digital media. That’s according to new research conducted by Forrester Consulting and SteelHouse, the ad software firm.
Forrester surveyed 153 marketers across the US to find out which challenges they must overcome in order to drive effective advertising. The results highlight that vendors are lacking transparency.
Right now, 58% of US adults are multi-device, multi-location, digital users. That gives marketers a huge playground. Indeed, 89% of marketers purchase social ads, followed by 77% buying banners and 73% mobile banner ads. Mobile ads are being purchased most frequently with 41% saying they buy them at least daily.
Most Purchase From Multiple Networks At Least Weekly Or More Frequently
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However, the multitude of advertising types means that managing them is not a simple task. Whilst mature advertisers adopt automated strategies, on average marketers use five types of marketing tools.
78% of marketers are using or expanding their DMPs, which collect their first-party data to drive consistent identities for consumers across devices.
Tool Use Is High, With Marketers Currently Using An Average Of Five
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In addition to technologies, marketers are also working with at least one tech vendor, and the average is four vendors.
However, there are a few challenges, including management of vendors with 39% of marketers admitting that they manage too many vendors. 48% of marketers also said that vendors failed to provide information and lacked transparency across media pricing. This also led 42% of them to admitting that they find it difficult not to be able to optimise their buys.
Marketers’ Top Challenges Involve Issues With Vendors
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The study went a little further in allowing marketers to choose their preferred pricing models. Those that preferred a CPM-based model felt it offered greater control over campaign ROAS as well as better transparency (49%) and increased ability to determine budget spending (55%).
CPM Pricing Models With Margin Included Offer Advantages In Increased Control And Flexibility Over Other Models
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Suggesting a single platform approach, 86% of marketers felt that it would improve the way they measure their impact, whilst 83% feel it could allow them to move into new markets and 82% admitted that it may improve lead quality.
A Single Platform Has An Impact On Numerous Marketing Priorities
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However, vendor lock-in is a serious consideration for most in regards to single platforms signaling an over-dependence to them. Cost is also a concern for switching and overall pricing associated with single platform usage.
Mark Douglas, SteelHouse President and CEO, says:
mark douglas

“We’re committed to not only understanding the challenges marketers face, but also providing the transparency this industry needs to allow buyers and sellers to efficiently and effectively drive ads to consumers.”