Programmatic or Problematic? The Battle Against Made-for-Advertising Websites
The persistent issue of Made-for-Advertising (MFA) websites continues to cast a shadow over the digital advertising industry. These platforms, primarily designed to absorb advertising dollars, have prompted substantial concern and led to a multi-billion dollar spending spree by advertisers.
A recent industry report exposed the magnitude of this predicament, revealing that advertisers collectively poured billions into MFA websites. In response, ad-tech vendors have embarked on a mission to rectify the situation over the past few months. However, the question looms – is their concerted effort making a tangible impact?
The Made-for-Advertising Websites Saga
The saga of MFA websites is not a recent revelation; it has been a thorn in the side of digital advertising for quite some time. CNBC even created a fake website that plagiarized content, underscoring the lack of quality controls for advertisers and ad-tech partners.
This year, the Association of National Advertisers unveiled a damning two-part report. It exposed that approximately 15% of programmatic, open-web advertising dollars funneled into MFA websites, accumulating a staggering $10 billion in ad spend.
In response to the report’s first installment in June, major ad-tech vendors, including Pubmatic, Magnite, and OpenX, pledged to exclude MFA inventory from curated publisher lists sold to select advertisers. However, advertisers navigating the open web still face the challenge of sifting through MFA inventory.
Notably, both DoubleVerify and Integral AdScience, two industry giants specializing in verification and brand safety, introduced distinct detection tools. These tools aim to shield advertisers from the clutches of MFA inventory, representing a significant step in fortifying the digital advertising ecosystem.
While ad-tech vendors take measures to purge the digital realm of MFA websites, demand-side platforms, the representatives of advertisers, have maintained a conspicuous silence on the matter. This silence prompts contemplation about their stance and the role they play in mitigating the MFA challenge.
Important steps for advertisers
Here are five essential steps for advertisers to elevate their approach and drive efficiency gains:
- Active Stewardship: Advertisers must take the reins and actively steward their media investments. It’s time to move away from complete delegation to agencies and embrace a more hands-on role in ensuring the efficacy of every advertising dollar spent.
- Data Access Contracts: Establishing direct data access contracts with primary supply chain partners is crucial. Transparency and data access rights are inseparable. Advertisers should consider direct contracts with DSPs, SSPs, and Ad Verification vendors to maximize transparency and control over data.
- Agency Partnerships with Full Transparency: Construct agency partnerships that provide complete access to data and full transparency of websites purchased on media buys. Understanding the distinction between the agency acting as an agent or principal is vital. Advertisers need clarity on when agencies are obligated to act in their best interests and ensure contractual transparency.
- Quality Over Quantity: Prioritize quality media buys over chasing low-cost inventory. Cheap CPM buys may lead to non-viewable and non-measurable media purchases. Striking a balance between cost-effectiveness and ad quality—ensuring viewability, fraud-free interactions, and brand safety—is essential for sustainable advertising efforts.
- Exclusion of “Made for Advertising” Websites: Demand the exclusion of “Made for Advertising” (MFA) websites from media buys unless explicitly wanted or needed. Advertisers should assess if MFA sites align with their brand suitability standards for content and user experience. Clearly defining the tolerance for the inclusion of MFA inventory in campaigns is essential.
As the industry grapples with this pervasive issue, the battle against MFA websites unfolds, and the efficacy of these countermeasures remains to be seen. The shadows cast by MFA websites persist, challenging the industry to innovate and fortify its defenses in the ever-evolving digital marketing landscape.
This article is written by Priyanshu Pande, Business ConsultantPriyanshu Pande
Business Consultant | Storytelling | Sports Marketing | Brand Marketing
Priyanshu is a passionate storyteller who has a penchant for building brands and a knack for understanding spreadsheets. With over 16 years in brand & sports marketing, he has worked on all facets of sports business in India – from formulating sports marketin strategies and activating brands to leverage sponsorships to managing atheletes & marketing sports teams & bodies.
Priyanshu’s driving force at work is the obsession to bring brands to life & closer to consumers with the power of design, right messaging & apt medium.
Is 28% GST on Online Gaming A Setback For Gaming Industry?
The GST Council announced a decision stating that online games would be subject to 28% GST. This decision has come as a shock to the recently flourishing gaming industry in India.
The report published by the GST Council stated that 28% GST would be imposed on total winnings, including the platform fee. Finance Minister Nirmala Sitharaman commented after the GST Council meeting, “We will bring an amendment to GST law to include online gaming, and will be taxed at 28 percent on its full face value.” She also mentioned that the decision was not made under the pretext of aiming for a specific industry.
The gaming industry is currently booming, providing vast employment opportunities for youth in the field of IT and creative professionals such as streamers, e-athletes, engineers, etc. The gaming industry hosts around 500 million gamers and a report published by the All India Gaming Federation stated that it is set to increase by $8.6 million by 2027, growing at a CAGR of 27%.
Although the gaming industry has boomed in recent years but has seen its fair share of setbacks from the ban on PUBG to state governments imposing restrictions on games to curb gambling addiction. The industry has been very optimistic with the reforms and advancements brought in by the IT rules as well as the TDS administration on net wins. However, experts have concluded that all these would be in vain if the GST regime was not liberal with these changes.
And that’s what they said
Malay Kumar Shukla, secretary of the E-Gaming Federation said, “This is an extremely unfortunate decision, as charging 28% tax on full face value will lead to a nearly 1000% increase in taxation and prove catastrophic for the industry.”
He added that playing online games is quite distinct from gambling and that judgments by the Indian Supreme Court and High Court have confirmed that playing skill-based online games is a legal activity that is protected as a fundamental right under Indian law.
Roland Landers, CEO of The All-India Gaming Federation remarked, “The decision was “unconstitutional, irrational, and egregious”, ignoring 60 years of settled legal jurisprudence and lumps online skill gaming with gambling activities.”
He further added, “We hope that the government will reconsider this recommendation and not implement it, as it will be catastrophic for the 1 trillion dollar digit economy dream of the Honorable PM.”
Industry experts believe that this judgment negates all of the government’s past efforts to advance the gaming industry.
Adscholars Victorious at MENA 2023 Smarties Awards
We are thrilled to announce that Adscholars emerged victorious at the highly prestigious MENA 2023 Smarties awards, clinching two bronze awards and earning a spot on the shortlist across three categories for the MENA region. MENA Smarties, part of the esteemed Mobile Marketing Association (MMA) Smarties program, recognizes and celebrates outstanding modern marketing initiatives that deliver strong business impacts. The MENA Smarties Awards, celebrated globally, applaud leaders, brands, agencies, and technology providers with their emphasis on innovation, creativity, and success.
“Jack Ryan Season 3 – The Power of Gamification,” is our award-winning created in collaboration with Initiative Media and PrimeVideo. This innovative campaign showcased the ability to pioneer new approaches in modern marketing, utilizing gamification to engage audiences effectively.
We achieved remarkable victories in the following categories:
-Impact Media: Gaming, Gamification & E-Sports and
-Creative: User Experience (UX) Design.
This momentous win marks a significant milestone for Adscholars, reinforcing our dedication to pioneering approaches and delivering exceptional results in the dynamic world of modern marketing.