New Report Finds That Quality Pays Off In Programmatic - And It's Not More Expensive | AdExchanger

"Marketers instinctively know that better data and higher-quality media drive better outcomes. But bad habits are sticky and they die hard, said Jamie Barnard , CEO of Compliant, a startup that tracks data quality standards across digital media. The ad industry has "a volume-based mentality," said Barnard, who knows that struggle firsthand. He spent nearly 16 years at Unilever as its general counsel focused on global marketing, media and ecommerce before leaving in 2022."

"Quality doesn't have to cost That's the question Compliant set out to answer earlier this year by running a set of controlled tests with four global brands spanning CPG, financial services, consumer electronics and consumer health care. The results, released on Thursday, will shock no one (not that people don't need to hear this): Quality drives performance and efficiency, buying low-quality inventory is money down the drain and, as it turns out, spending on better media doesn't have to cost more."

"But as obvious as that sounds, the reality is more complicated, said Sameer Amin, VP of data-driven marketing at Reckitt, one of the advertisers that participated in the study, whose portfolio includes everything from Lysol, Mucinex and Clearasil to Durex, K-Y and baby formula brand Enfamil. One of the reasons why buyers continue to chase cheap, high-volume inventory is because of inadequate measurement."

Compliant ran controlled tests with four global brands across CPG, financial services, consumer electronics, and consumer health care to compare media quality levels. Advertisers that prioritized data integrity and purchased impressions from high-value publishers achieved a 33% lower cost per action, a 32% reduction in CPMs, and a 5% higher return on ad spend. Buying low-quality, high-volume inventory produced worse performance and wasted spend. Buyers often chase cheap inventory because measurement approaches such as econometric models and marketing-mix analysis can favor low-cost inventory without assessing quality. Spending on better media does not necessarily require higher costs.

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