Ecommerce Brand Wastes 40% of Ad Spend on AI-Generated and Inactive Sites

Published on November 20, 2024 by Banzai

The rise in AI-generated made for advertising (MFA) sites is complicating the task for advertisers aiming to ensure their ads appear in high-quality environments. This issue is exacerbated when using AI-powered media buying tools like Google’s Performance Max (Pmax). According to multiple sources, an ecommerce brand discovered that 30% to 40% of its Pmax display and video ads were displayed on MFA sites, characterized by their generic layouts and AI-driven content. These ads were disseminated through Google’s video partners, a network of third-party video platforms that Google claims adhere to high standards.

Despite Googles assurances, agencies report challenges in controlling ad placements on these MFA sites. A second agency executive noted that even with efforts to address the problem, around 5% of ads still end up on such sites. A report by Adalytics in 2023 revealed that up to 80% of ad placements via Google Video Partners (GVP) land on MFA sites, despite Googles promises of premium ad placements. The proliferation of AI-generated sites, which can rapidly increase in number, has expanded the pool of low-quality sites where ads might appear.

Advertisers are now using third-party services like DeepSee.io and Jounce for better visibility into their ad placements, which has led to a shift in focus towards inventory management rather than mere audience targeting. Some ads were found on obscure sites within a Google-owned category, often identified by spammy domain names. This issue isnt isolated to a single brand but has been observed across multiple brands. Though Google introduced dynamic exclusion lists in 2021 allowing advertisers to block placements based on topics or devices, these lists do not specifically target MFA sites, leaving advertisers to play a continuous game of Whack-a-Mole.

Additionally, a third brand executive from an insurance company highlighted difficulties in tracking YouTube ad placements. Over time, the traceability of their ad spend has decreased, with a significant portion falling into an ambiguous other category, akin to MFA sites. This category, often resulting in phantom traffic, shows no measurable performance, raising concerns over transparency. Despite making ad placement tracking data available, the sheer volume of data makes it cumbersome for marketers to sift through, further complicating efforts to ensure ads are placed on quality sites.

Read Original Article Back to Articles