SPO, Sustainability & Transparency Takes Centre Stage at Cannes Lions 2024

The 2024 Cannes Lions International Festival of Creativity has shed light on a significant shift in the advertising industry's focus. While AI dominated discussions in previous years, this year's conversations centred around a critical aspect of the advertising ecosystem: supply chain transparency and sustainability in media buying.

At Alkimi, we've observed a growing trend among brands seeking to make their media 'more sustainable'. However, many lack a concrete strategy to achieve this goal.

In this latest newsletter, we'll delve into the complexities of the current programmatic infrastructure, explore the potential of Supply Path Optimisation (SPO) and log-level data analysis, and discuss how these tools, combined with sustainability initiatives, are shaping the future of programmatic advertising.

The Current State of Programmatic Infrastructure

The programmatic advertising landscape is currently plagued by inefficiencies and lack of transparency. When an advertiser runs a digital ad campaign, their investment passes through a complex network of intermediaries before reaching the publisher. This convoluted path obscures the flow of money and profit distribution, leading to several issues:

1. Hidden Fees: According to the ISBA's Programmatic Supply Chain Transparency Study, a significant portion of advertising spend is lost to undisclosed fees and markups.

2. Lack of Accountability: The opaque nature of the supply chain makes it challenging to hold intermediaries accountable for their performance and pricing.

3. Inefficient Resource Allocation: Without clear visibility into the supply chain, advertisers struggle to optimise their spending and maximise ROI.

4. Potential for Fraud: The complexity of the system creates opportunities for bad actors to exploit vulnerabilities and engage in ad fraud.

Supply Path Optimisation (SPO): A Step Towards Transparency

Supply Path Optimisation (SPO) has emerged as a crucial tool in addressing these challenges. SPO platforms provide advertisers with detailed insights into the maze of intermediaries and inventory resales, allowing them to:

1. Evaluate Vendors: Assess the performance and value proposition of each intermediary in the supply chain.

2. Cut Unnecessary Costs: Identify and eliminate redundant or underperforming partners.

3. Increase Transparency: Gain visibility into the flow of advertising dollars from the advertiser to the publisher.

4. Optimise Based on Value: Make data-driven decisions about inventory sourcing and partner relationships.

To find out more about SPO, Transparency & Log-Level data, visit our blog here.

The Importance of Log-Level Data Analysis

While SPO provides a macro-level view of the supply chain, log-level data analysis offers granular insights that are equally crucial for true optimisation. Log-level data tracks individual ad impressions, providing advertisers with:

1. Validation of Supply Sources: Verify that ads are being served on the intended websites and apps.

2. Detailed Performance Metrics: Analyse the performance of individual placements and creatives.

3. Fraud Detection: Identify suspicious patterns that may indicate fraudulent activity.

4. Audience Insights: Gain a deeper understanding of the users interacting with the ads.

By combining SPO with log-level data analysis, advertisers can create a comprehensive strategy for supply chain optimisation that is rooted in verifiable data and genuine ROI analysis.

Sustainability in Advertising

The 2024 Cannes Lions festival highlighted sustainability as a major concern for the advertising industry.

Key developments include:

Industry Framework: The Global Alliance for Responsible Media and Ad Net Zero released a sustainability framework, providing guidelines for measuring and reducing carbon emissions in advertising.

Accountability: The framework delineates responsibilities for brands, advertisers, and other partners in the supply chain regarding emissions reduction and mitigation.

What are Alkimi doing to address these challenges in Adtech?

We're committed to addressing these industry challenges head-on. Our ad exchange is designed to restore the value exchange between advertisers, publishers, and users while significantly reducing fees and carbon emissions.

Key features of our approach include:

1. Blockchain Technology:

   Our platform ensures that every transaction is independently validated and recorded on a transparent and immutable ledger – the Ads Explorer.

2. Comprehensive Auditing:

   We conduct financial audits for 100% of media spend, providing unparalleled transparency.

3. Real-Time Visibility

   : The Ads Explorer offers real-time insights into all transactions occurring on the platform.

4. GDPR Compliance:

   We ensure the secure storage of confidential data, with pseudonymous display on the public Ads Explorer.

5. Sustainability Focus:

   By streamlining the supply chain and reducing unnecessary intermediaries, we help decrease the carbon footprint of digital advertising campaigns.

By becoming B Corp certified, it shows a testament to Alkimi's dedication to meeting the highest standards of social and environmental performance, transparency, and accountability.

The Path Forward: Integrating Transparency, Sustainability, and Value

As the advertising industry grapples with these complex challenges, it's clear that a multifaceted approach is necessary. By integrating Supply Path Optimisation, log-level data analysis, and sustainability initiatives, advertisers can:

1. Gain Unprecedented Supply Chain Insights: Understand the journey of every advertising dollar from start to finish.

2. Optimise Partnerships: Make data-driven decisions about inventory sources and intermediary relationships.

3. Reduce Waste: Cut unnecessary costs and minimise the environmental impact of advertising campaigns.

4. Enhance Brand Safety: Ensure ads are appearing in appropriate contexts and reaching the intended audiences.

5. Improve ROI: Allocate resources more efficiently based on comprehensive performance data.

6. Support Quality Journalism: By understanding the true value of different inventory sources, brands can make informed decisions about advertising alongside news content.

The future of programmatic advertising lies in the intelligent application of transparency tools, data analysis, and sustainability practices. At Alkimi, we're committed to leading this charge towards a more open, efficient, and responsible advertising landscape.

As we move forward, it's crucial for brands and agencies to develop concrete strategies that incorporate these principles. By doing so, they can not only improve their immediate ROI but also contribute to building a more sustainable and accountable advertising ecosystem for the future.

The 2024 Cannes Lions International Festival of Creativity has underscored the urgency of these issues, bringing them to the forefront of industry discussions. As the world's premier event for the creative marketing community, Cannes Lions serves as a barometer for industry trends and a catalyst for change. The emphasis on supply chain transparency and sustainability at this year's festival signals a significant shift in priorities that is likely to shape the advertising landscape for years to come.

The future of advertising requires facts, and at Alkimi, we're dedicated to providing the tools and insights needed to navigate this new era of media buying. By embracing the lessons and insights from Cannes Lions 2024, we can collectively work towards a more transparent, efficient, and sustainable future for programmatic advertising.

The true measure of Cannes Lions' impact lies not in the conversations held, but in the actions we take now that we've returned to our desks.