Revenue-Share Orgy: Why Ad Agencies Are in Bed with Everyone
Alright, folks, let’s talk about the elephant in the room that’s been tap dancing on our coffee tables while we all pretend it’s a pet cat. Dave Morgan of Simulmedia has
pointed out something that's not just wrong—it’s like discovering your favorite vegan restaurant serves prime rib on the sly. We’re talking about those “strategic” partner deals with opaque revenue shares, push-button "black box" trading with murky inventory pools, and a whole industry thriving on willful ignorance. It’s like we’re living in a digital version of “The Emperor's New Clothes,” and everyone’s too scared to admit they see the naked truth. Gone are the days of good old-fashioned handshakes, transparent deals, and face-to-face negotiations. Now, it’s all about “camera-off” meetings, avoiding eye contact, and pretending our ethical compass isn’t spinning like a fidget spinner. We’re all being tasked to do more with less, and while data-powered analytics and automated platforms are undeniably crucial, they shouldn't replace the dialogue and transparency that kept our ecosystem from imploding. Morgan hit the
nail on the head: We’re not going to fix our industry’s anemic ad-driven sales growth without rekindling the critical thinking, transparency, trust, and communication that originally built our business. This isn’t just about dragging our heels on the return of in-person meetings—it’s about an industry-wide decision to stick our heads in the sand and hope the problems will just go away. Remember when media ad sales were made
between actual humans, not faceless algorithms? Buyers would scrutinize their purchases with a “post-buy” analysis, especially in national TV, making timely adjustments based on real-time GRP delivery. Sellers could spot deficiencies and rectify them on the fly, ensuring everyone got their money’s worth. Fast forward to today, and it seems programmatic buys rarely get this level of scrutiny—if they get any at all. These “strategic partner deals” are cloaked in non-disclosure agreements thicker
than a mobster’s alibi. The people striking these deals don’t want campaign funders to know how the money is shuffled around. In the world of mystery, there is margin. The real shocker? These revenue shares often drive more profit than the base client fees. The tail is wagging the dog, with media, data, and verification vendors chosen to optimize platform profits, not client results. Let’s call it what it is: cheating, lying,
and downright sleazy. It’s not like each company only has one strategic partner they rev-share with. If anything, they rev-share with as many as possible—certainly, any willing to provide a significant percentage and guarantee it as well. The rampant opacity and revenue-sharing in programmatic advertising are not just frustrating—they’re damaging the very fabric of the industry. Advertisers, misled by skewed statistics and murky dealings, are left wondering why their campaigns aren’t delivering.
This opacity often leads to less effective advertising, causing a cascade of blame-shifting. It’s like playing a game of musical chairs where the music never stops, but everyone’s still scrambling for a seat. What’s even more concerning is the fiduciary irresponsibility of Boards and CEOs who allow this to continue for short-term gains. By prioritizing these rev-share deals, they’re sacrificing long-term client trust and
effectiveness, driving advertisers away from agencies and towards in-house solutions. It’s a short-sighted strategy that ultimately undermines the firm’s longevity. This system breeds perverse incentives. Agencies and platforms are constantly juggling numbers to “prove” their methods are effective, contorting data into pretzels to make it look like they’re delivering value. The reality? They’re covering up the black box’s opacity, masking the true inefficiencies and failures of the system. This
isn’t just dishonest—it’s borderline fraudulent. Yet, here we are, still allowing it to happen. The industry is watching this train wreck in slow motion, convinced it’s some avant-garde performance art. We’re sitting front row with popcorn, pretending this isn’t a catastrophe unfolding before our eyes. The numbers game has turned into a grotesque charade, with everyone playing along to keep the facade intact. Agencies and
platforms are more interested in keeping their rev-share deals alive than in producing effective, transparent campaigns. The health of our industry is at stake, yet we continue to prioritize short-term gains over long-term integrity. Dave’s hope is that as Connected TV (CTV) grows and walled gardens like Amazon and Roku prioritize ad experience and yield, we might finally crack open these notorious black boxes. It’s a nice
dream, but the financial incentives are too deeply entrenched in favor of opacity and short-term profits. The reality is that these walled gardens are more interested in controlling their ecosystems and maximizing their yields than in fostering transparency. They’re like the exclusive nightclubs of the ad world—unless you’re on the VIP list, you’re left standing outside, peering through the tinted windows. The allure of easy profits and the comfort of the status quo mean that any real push for
transparency is met with the same enthusiasm as a root canal. But let's get real here. Even if the CTV giants decided to embrace transparency, they’d still be navigating a minefield of vested interests and entrenched behaviors. Breaking open the black boxes is like trying to clean out a hoarder’s house—there’s so much junk, hidden treasures, and downright garbage that it’s hard to know where to start without a complete
overhaul. The system’s designed to be murky, with layer upon layer of secrecy and complexity that benefits those who know how to game it. Dave’s optimism is commendable, but without a seismic shift in how we prioritize transparency over profits, we’re just rearranging deck chairs on the Titanic. The industry needs a radical change, a willingness to sacrifice short-term gains for long-term stability and trust. Until then, hoping
for transparency in the ad tech world is like waiting for that rainstorm in the desert—occasionally you’ll feel a raindrop, but mostly you’re left dry and disappointed, staring at a mirage of what could be. In the end, it’s up to us—advertisers, agencies, platforms—to demand better. We need to push for clarity, to shine a light into these black boxes, and to dismantle the perverse incentives that keep them in place. It’s a tall
order, but if we don’t act, we’ll be left wandering the desert, chasing mirages and wondering why the oasis always seems just out of reach.
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THREE STORIES THAT YOU NEED TO KNOW in a format that isn't TL:DR summarized for the busy executive
TikTok is tightening the reins on how advertisers can target teens, giving personalized ads the boot for users aged 13 to 17. Instead of hyper-focused campaigns, advertisers will now have to settle for broader strokes like location and device info. This move mirrors Meta’s teen-protection measures
on Instagram and Facebook, acknowledging the digital naivety of teens when it comes to data usage. With a hefty chunk of TikTok’s user base in their teens, this shift could send ripples through advertising strategies. Adding to the mix, TikTok is also boosting user control with features to filter ad topics and block off-platform data sharing. Looks like TikTok is growing up faster than its
users! Taco Bell is turning the concept of early retirement on its head with The Cantinas, a two-day event in San Diego that's more "Living Más" than bingo night. Exclusively for over-21 Taco Bell Rewards Members, this August 17-18 fiesta offers senior-inspired activities like pickleball and aerobics, but with a saucy twist. With memberships at $150 and day passes at $50, it’s a weekend to remember—or forget, depending on how much Taco Bell's boozy offerings flow. This quirky
stunt echoes their 2019 pop-up hotel success and reinforces the brand's knack for blending nostalgia with innovative, immersive experiences. Retirement never sounded so spicy!
Shapermint's leap into the AI revolution has slashed production times by 70%, thanks to their in-house tool, Altair, which churns out scripts and storyboards for influencer content. This nifty piece of tech, integrated with OpenAI and
Meta APIs, lets their team whip up what used to be a week’s worth of campaigns in just a day. Despite the flashy promise of generative AI, Shapermint sticks to real footage over AI-generated visuals, ensuring authenticity. This efficiency drive has freed up resources to expand onto platforms like YouTube and Pinterest, while their influencer budget ballooned by 20%. With an annual revenue spike of 35% expected, it's clear that this AI-fueled strategy isn't just smoke and mirrors—it's a
game-changer. Havas Play, the experiential dynamo, is teaming up with Catalyst 4 Professional Sports Management to score global and local sports sponsorships,
making the corporate world’s wildest sports fantasies come true. With exclusive access to the Premier League, Formula 1, and top cricket leagues, this partnership is a goldmine for brands wanting to buddy up with sports fans worldwide. Launched just last year and already flexing with 300 staffers across 19 countries, Havas Play is on a mission to ride the booming sports sponsorship wave, expected to nearly double to $194 billion by 2030. Game on,
indeed.
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