This is the final post in a series on transparency. In today’s article, we look at data transparency, why it’s important, and the elements of a transparent data model.
We’ve reached the last article in our series on transparency in programmatic display advertising. For those of you just tuning in, let’s quickly recap:
- In How to Evaluate Programmatic Buying Transparency—Types and Tips, we covered the three types of programmatic transparency—intermediary, environmental, and data.
- Tips to Determine the True Cost of Your Programmatic Supply Chain took a deeper dive into intermediaries, and ways to calculate what you’re spending with each one.
- In The Good, the Bad, and the Unviewable—The State of Ad Viewability, we examined why it’s important to uncover ad fraud, brand safety, and ad viewability.
To wrap things up, this article looks at the importance of having access to all of your data—not just the numbers a publisher wants you to see. Let freedom—and transparency—ring.
The Trouble with Too Little Data
When it comes to data visibility needs and desires, advertisers and agencies run the gamut—some are happy to pay on a CPC basis without knowing what CPM the vendor paid. Others are okay tracking to just a few KPIs. Still others want it all. What’s the best way to go?
The key to transparency is precision—whether you’re running a direct response or a brand campaign, having the right data measures the impact of either type of campaign, and allows you access to what you need to measure ROI.
So what do advertisers most often expect from their ad tech vendors and publishers? Our take is that list is long, but we’ll focus on the essential data you need to transform “unaware” to “X-ray vision.”
To gain greater intelligence about the effectiveness of your display campaigns and to better understand the customer journey and attribution, at minimum, you need access to:
- Effective cost per thousand impressions (eCPM): the effectiveness of a CPM campaign that takes earnings into account and gives you a comparable metric across buys
- Assisted conversions and view-through metrics: measures the extent to which display ads influence subsequent site visits and sales—without a click—and avoids allocating value to ads that didn’t influence a visit or sale
- Site-level reporting and performance by domain: whitelisting and blacklisting promotes better targeting and provides a way to measure site-level effectiveness
- Bids: know what your partner’s bidding for each impression (win vs. bid rate), and the logic, math, and algorithms behind a bidding process
- The lookback window used to calculate conversion credit: lets you understand the relationship of a consumer’s engagement during upper-funnel tactics to drive awareness and consideration (e.g., 30-day+ window) or lower-funnel tactics (e.g., a two-day window) to give proper attribution to the campaign that lead to the conversion
This level of transparency allows you to understand true ROI. It also lets you keep an eye on how your bids are managed, unlike black box vendors who don’t reveal a history of bid calculations or otherwise provide any idea of what—and how—you’re actually doing. With the black box model, it’s much harder/impossible for you to look into the data and understand what’s driving conversions or an algorithm. Conversely, being able to do this provides you with a high level of visibility into the effectiveness of your campaign.
Why All the Secrecy?
Despite industry calls for greater data transparency on many levels, mum’s still the word from most vendors and publishers. Some players have their reasons—the main one being to maintain a competitive edge. Understandable. However, as more and more brands pound at the locked doors of black box vendors, it’ll become less to those vendors’ advantage to keep the secret sauce secret.
If a vendor is transparent about not being transparent, is that “transparent”? We say “no.” As vendors realize this, perhaps there’ll be some level of agreement that to survive in an increasingly tug-of-war environment, neutrality and openness are key.
That is, companies must heed the call to “show me the data.”
Transparency for Optimal Performance
In sum—the best way you can improve campaign performance is to know exactly how bidding, reporting, and attribution are all working independently and in concert. Once you have this level of data and insight, you’ll know exactly how your budgets are working for you (or not), and you can take active steps to enhance effectiveness. At that point, you’ll have a crystal-clear view of your marketing efforts—and your ROI—to give you the confidence, control, and independence you need to execute measurable marketing initiatives.