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Failed Execution in the Ad World

Filed under: All Articles > Industry News
By: NMK Created on: January 15th, 2007
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Most online advertisers and ad agencies in the UK are critical of their online publishers' ability to execute fully, according to a new study by research group GMI.

Most online advertisers and ad agencies in the UK are critical of their online publishers' ability to execute fully, according to a new study by research group GMI.

More than half of advertisers and agencies (53 per cent) say they are not convinced publishers have the appropriate business processes, practices and infrastructure in place to deliver effectively on contracts. When asked to judge publishers on customer service, ROI/accountability, campaign delivery, accuracy of responses to RFPs and ad trafficking, 70 per cent of advertisers and agencies thought publishers were either average or under par.

Overall, publishers were inclined to agree with their clients' views (67 per cent). All parties agreed that customer service was the most important measurement criteria but only half of the publishers questioned felt it was something they were good at. Only 18 per cent said they believed they gave better than average to good ROI.

When asked about their three greatest operational challenges over the coming two to three years, 2 in 3 publishers cited the full integration of their current systems and tools, closely followed by improving customer service and streamlining operational processes. All three of these areas of pain came ahead of staff training and development, and attracting more skilled sales and operational staff. The majority (68 per cent) agreed that operational personnel are currently spending too much time on low value tasks that could be automated.

"As advertisers increase the spend and number of sites they wish to deal with, it is natural for them to put a publisher's business under scrutiny when it comes to execution and delivery," commented Tullio Siragusa, Senior Vice President, Operative, an agency specialising in online advertising logistics which sponsored the report. "Without doubt, many publishers have key business challenges to address and overcome within the next 6-12 months. It is pleasing that the majority of publishers are eager to stay ahead of their competition through the implementation of operational improvements and changes."

The survey findings are based on responses from 50 UK-based advertiser/digital media agency decision makers, and 50 UK-based online publisher decision makers. Companies ranged in size from below £1 million to in excess of £100 million. Only those responsible for digital media planning/buying and digital media sales/operations were eligible to take part.

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