Programmatic ad waste has surged 34% to nearly $27 billion annually, according to the ANA's latest report.
Advertisers have reduced spending on low-quality 'made-for-advertising' sites to less than 1% of total waste.
The ANA introduces a new 'ANA Online Benchmark' tool to help marketers identify inefficiencies and improve investment decisions.
The Trustworthy Accountability Group (TAG) will also have access to the new benchmark tool, promoting industry-wide collaboration.
Wasted programmatic ad spend has ballooned 34% over the last two years to nearly $27 billion annually, despite progress in other areas, according to a new programmatic transparency report from the Association of National Advertisers (ANA).
Leaky bucket gets leakier: The headline figure marks a dramatic increase from the $20 billion in waste identified just two years ago, showing that despite industry efforts, the overall inefficiency gap is widening.
Stamping out the spam: The report isn't entirely grim, however. Advertisers have nearly eliminated spending on low-quality 'made-for-advertising' (MFA) sites, which now account for less than 1% of the problem, down from two-thirds in 2023, an improvement achieved by advertisers focusing their ad dollars on premium websites and funneling more budget into connected TV (CTV).
A tool for transparency: In response, the ANA is launching a new 'ANA Online Benchmark' tool, which it says will help marketers "spot inefficiencies, track progress and make smarter, faster investment decisions without waiting for the next quarterly report."
As CEO Bob Liodice noted, while the gains are encouraging, "the billions in unrealized value and dip in efficiency make it clear that optimization and transparency must remain top priorities.” The ANA isn't going it alone; the new benchmark tool is also being made available to members of the Trustworthy Accountability Group (TAG), which reflects a broader industry collaboration to tackle ad waste.
