How did Video Ads Meant for Break.com end on T&A Sites?
Interactive Advertising brokering has been around forever and there is a real service
to be provided for advertisers that are looking for reach, don't care about where their ads are and especially are looking for ROI. However, the purposeful brokering of advertising in violation of an agreement to other networks, exchanges and websites is nothing more than fraud. In video advertising a premium is often paid for video advertising for this placement and the brokering of the advertising is not only misleading but severely devalues the actual advertisement. However, what I found a few weeks ago, where advertising meant for Break.com video pre-rolls ended up in 300x250 ads on the RightMedia exchange and T&A websites went to a whole new low.
I'm going to keep this really short and to the point. Several advertisers and video networks bought advertising meant specifically for Break.com and the Break.com video network. However, instead of them showing on the Break.com website, Break.com contracted with a third party video broker to distribute that advertising. While the specific reason is not known, from talking to experts in the industry, they shared with me that many of the websites out there do not have the "reach" needed for all the video advertising that is sold to video advertisers, so they use a few well known video brokers to take those advertisements and put them in other places.
In this case, the video broker (who is known to me, but I have agreed not to expose) took the advertisements and brokered them to another source in India, who in turn went to an associate of a company called EyeCue digital. The next step is really bad: somewhere between those steps, the broker took the video preroll, recoded it so that it would show up in 300x250 banners and EyeCue Digital put that 300x250 on the RightMedia advertising exchange. So, not only did some advertisers who wanted to end up on Break.com not get shown on Break.com, but their advertising was being shown in a 300x250 banner on every possible site in the RightMedia Exchange.
The real problem here is not only the brokering, but the method of the brokering and the enormous amount of possible fraud. Since video advertising is paid on a premium, when the high CPM 300x250 was put onto the exchange, it had a very high bid price. Since impression volume on the exchange are determined by this price, the 300x250 advertisement with the various video advertisers had a premium placement and became one of the top shown advertisements on the exchange. While the amount isn't known specifically, you can guess that there is a real possibility that millions of video pre-rolls could have been shown per day in this manner, if not more.
In the following video, you can see this video ad being shown through one of the RightMedia Exchange companies, Xtend Media out of Israel. It is being shown on the bottom of Celebrity T&A site, specifically their lingerie section.
http://www.youtube.com/watch?v=bSuJqOIPqP4In the following videos I load just the Xtend Media code, and these ads show up over and over again in the 300x250 size. In some examples, advertising from networks such as SpotXchange are actually showing up, meaning that video advertising was booked on those networks, which ended up on Break, which were brokered to the video broker, who then brokered to the display network which went on the RightMedia exchange.
http://www.youtube.com/watch?v=jhfzuigese0The issues are obvious here: several advertisers and agencies paid a premium price for their advertising to be shown on a specific site or sites. By the time the advertisements were played, they had been brokered several times and the price eventually paid onto the exchange almost 90% less than the original price after everyone took their cut. This means that companies like UBISoft paid potentially hundreds of thousands of dollars in production costs, media services, agency fees to have their advertisement to become a cheap display advertisement on one of the worst possible placements.
Whose fault is this? I'm not quite sure. I do know that Break.com shouldn't be working with other "networks" or "brokers" if they are representing to advertisers a premium advertising network. I do know that the company that took the video pre-roll and turned it into a 300x250 advertisement and then brokered it out again to get it on an advertising exchange should be severely spanked.
What does really bother me is that all the companies that I spoke to, from UBISoft's Agency to Break.com didn't really want to provide information or being candid about this. Everyone screwed up somehow in each step, but no one wanted to talk about it least they admit fault and basically pretended they didn't understand the real issue here. Perhaps that's the biggest issue here: the complete lack of understanding the issue, having quality control and taking steps to protect clients. Everyone just wanted to send canned responses and not really look at what was going on. They should have been pissed.
"Break Media takes great measures to ensure that our advertising partners are protected against fraudulent behavior. We are consistently developing relationships with premium network partners, as well as evaluating placement and performance across existing partner publishers."
Oh really?
How did Video Ads Meant for Break.com end on T&A Sites?
By: Pace Lattin
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