“Transparency” has to be seen, to be believed
Sydney – 9 May 2016: Australian businesses have the option for full transparency and disclosure into technology, media and services costs, fees and rebates, through even more transparent business practices announced by independent consultancy, Louder.
Transparency and trust in media have been a hotbed of discussion, but resulting in little change to industry practices. The last year has seen some media groups admitting to being paid rebates, or managing value banks, as well as trading desks and vendors being accused of making +60% margins on programmatic advertising .
It is forecasted that Australian advertisers will spend 23% more YoY on programmatic advertising in 2017 . Unchallenged, this could cost Australian advertisers between $150m and $350m (depending on the margins of agency trading desks – examples here are 30% and 70%) on programmatic spends of ~$500m. Agencies are not the only ones to blame. Scrutiny needs extend to similarly named in-agency or in-vendor trading solutions, or performance publishers owned by agency groups that effectively operate without declaring media cost or margin to clients.
Inspired by the Buffer transparency model, Louder firmly believes that it is time for this malpractice to end by only delivering fully accountable solutions to clients, and ultimately set the benchmark for the market as a whole. As such, Louder is commencing their business transparency roll out beginning with a fully open digital buying model and trading environment (direct, search, programmatic; display, social, video and mobile). Louder’s trading framework can either be adopted by existing providers, or alternatively, these services can be provided on a consulting basis as part of an enabling a fully In-house trading function.
For advertisers, the delivery will involve businesses or their agencies adopting Louder’s market proven methodologies and processes giving more granularity and transparency in their media buying, ownership of their data and the control of their spend while limiting exposure to non-viewable advertising, fraud and bots.
On the technology front for both advertisers and publishers, it’s not much different, with specialists and consultants having alternative financial agendas for pushing particular solutions which cumulate in revenue share or financial incentives for recommending a vendor.
All this hardly comes as a surprise with the same advisory firms being paid by the client for the strategy, and the subsequent delivery of services to put the recommended solutions live. Surprising is, if anything, the extent by which marketers underestimate their brand’s potential to deliver in digital – their expectations being carefully orchestrated by those advisors and agencies.
Louder is endeavouring to create an open framework for businesses, with a BYO technology contract model available, and for smaller businesses, or advertisers who do not wish to deal with the technology licensing, Louder offers use of their open technology stack. These models are oriented around the client ownership of data and transparency of costs. The principles are baked into client contracts to ensure complete accountability.
Hughes, the founding Consultant at Louder said: “Louder has been asked by multiple clients to provide buying solutions in a transparent manner, but as a business, we would be contradicting our ethos if we set up a traditional trading or buying function. As such, we are extending our transparent consulting model to incorporate media buying. Our transparency, independence and vendor agnosticism enables us to deliver this at scale for our client base.”
“It is important to note that this transparency is not exclusively about advertising expenditure, but about spend throughout the marketing and technology space for both advertisers and publishers; web and mobile platforms, bidders, ad servers, data solutions and publisher yield management. Businesses look to Louder for their expert assistance in deriving the greatest value from the tools that they have at their disposal. Louder is focused on empowering practitioners through creating resilient solutions that benefit their business rather than just providing the latest shiny toy or sound bite.”
Louder, is an independent, transparent and technology agnostic consultancy based in Sydney, Australia servicing both advertisers and publishers throughout Asia Pacific with marketing automation and digital transformation services since 2014.
If you wish to speak to us, please visit; Contact Louder