New cases of fraud further fracture the programmatic ecosystem
Posted: Tue Jan 07, 2025 8:49 am
Despite the doubts that have begun to arise in the industry as a result of programmatic advertising, the truth is that this sector has grown unstoppably in recent years and forecasts do not predict that it will stop.
In fact, according to data from eMarketer, it is expected that, in 2020, 44.9% of advertisers' investment will correspond to digital media, reaching 100 billion dollars.
Likewise, in 2017 it is estimated that 80% of display advertising transactions will be carried out programmatically.
However, not all advertisers are in favour of this type of advertising partnership. One example is P&G, the world's largest advertiser, which recently announced significant budget cuts and the relocation of its investment to digital media.
The reason, according to its CMO, Marc Pritchard, has been the huge argentina phone number loss of money due to fraud in the supply chain with only 25% of digital investment actually being effective.
But it seems that the situation has become even more serious, with the matter even reaching the courts.
Uber has sued digital agency Fetch Media, accusing it of wasting tens of millions of dollars on “purchases of non-visible or fraudulent advertising.”
The shipping company also alleged that the agency created “an environment of confusion and fraud for its own personal benefit” and that of its parent company Dentsu Aegis Network, including the collection of certain amounts of money from its investment that were not disclosed.
Fetch Media has denied the allegations , saying they are unfounded and a strategy by Uber to distract attention from its “non-payment to its suppliers.”
Apart from the Uber case, RhythmOne, an advertising technology platform, and dataxu have also filed lawsuits.
Initially, the former demanded payment of $1.9 million in unpaid bills, an accusation that dataxu responded to with a lawsuit accusing RhythmOne of “using false bids to obtain financial overcharges on a continuous basis.”
These cases only serve to highlight the gaps that persist in the purchase of digital advertising and the lack of transparency in the relationship between agencies and advertisers.
Advertisers' inability to access the real value of digital inventory puts them at a disadvantage, without knowledge, and limits their ability to act.
All this, together with the bad practices of those who should be partners in the digital ecosystem, further widens the gap in the relationship between the different market agents and shakes the business of programmatic media buying.
In fact, according to data from eMarketer, it is expected that, in 2020, 44.9% of advertisers' investment will correspond to digital media, reaching 100 billion dollars.
Likewise, in 2017 it is estimated that 80% of display advertising transactions will be carried out programmatically.
However, not all advertisers are in favour of this type of advertising partnership. One example is P&G, the world's largest advertiser, which recently announced significant budget cuts and the relocation of its investment to digital media.
The reason, according to its CMO, Marc Pritchard, has been the huge argentina phone number loss of money due to fraud in the supply chain with only 25% of digital investment actually being effective.
But it seems that the situation has become even more serious, with the matter even reaching the courts.
Uber has sued digital agency Fetch Media, accusing it of wasting tens of millions of dollars on “purchases of non-visible or fraudulent advertising.”
The shipping company also alleged that the agency created “an environment of confusion and fraud for its own personal benefit” and that of its parent company Dentsu Aegis Network, including the collection of certain amounts of money from its investment that were not disclosed.
Fetch Media has denied the allegations , saying they are unfounded and a strategy by Uber to distract attention from its “non-payment to its suppliers.”
Apart from the Uber case, RhythmOne, an advertising technology platform, and dataxu have also filed lawsuits.
Initially, the former demanded payment of $1.9 million in unpaid bills, an accusation that dataxu responded to with a lawsuit accusing RhythmOne of “using false bids to obtain financial overcharges on a continuous basis.”
These cases only serve to highlight the gaps that persist in the purchase of digital advertising and the lack of transparency in the relationship between agencies and advertisers.
Advertisers' inability to access the real value of digital inventory puts them at a disadvantage, without knowledge, and limits their ability to act.
All this, together with the bad practices of those who should be partners in the digital ecosystem, further widens the gap in the relationship between the different market agents and shakes the business of programmatic media buying.