21% of Ad Impressions Are from MFA Sites: Is Your Budget at Risk?

The digital advertising industry is grappling with a pervasive problem: Made for Advertising (MFA) websites. These websites prioritize ad revenue over user experience, flooding their pages with excessive ads and often featuring low-quality or clickbait content. While this practice might benefit website owners through ad arbitrage, it poses significant challenges for advertisers, who risk damaging their brand reputation and wasting ad dollars on ineffective placements.

A 2023 study by the Association of National Advertisers (ANA) revealed the alarming extent of this issue: 21% of all ad impressions occur on MFA sites. This finding sent shockwaves through the industry, prompting many ad tech vendors, agencies, and industry groups to publicly declare their commitment to tackling MFA websites.

However, recent research conducted by Adalytics in January 2024 paints a different picture. Despite numerous assurances and the implementation of various measures, MFA websites continue to plague the digital advertising landscape. This research, relying on publicly accessible data and examining a sample of 22 websites confirmed as MFA sites by industry experts, reveals the following:

Brands Remain Exposed to MFA, Including Those Leading the Charge Against It

The Adalytics study observed thousands of brands, including many ANA members, having their ads served on MFA websites.  Shockingly, 16 out of the 17 brands who publicly disclosed their participation in the ANA's 2023 Programmatic Transparency Study were found to have ads running on these MFA websites in 2024. This is particularly concerning as these brands were at the forefront of raising awareness about MFA and advocating for solutions.

Ad Tech Vendors Implicated, Even Those Claiming to Block MFA

The study reveals the widespread involvement of various ad tech vendors in transacting ads on MFA websites. These include:

• Supply-Side Platforms (SSPs) like Google Ad Manager, Magnite, OpenX, Pubmatic, and TripleLift were found to be serving ads for thousands of different brands on MFA sites, despite some having publicly announced initiatives to eliminate MFA inventory.
• Demand-Side Platforms (DSPs), including Google DV360, Amazon DSP, and others, were also observed to be placing ads on these sites. Interestingly, The Trade Desk (TTD) and Walmart DSP were not observed to be involved, possibly due to their long-standing stance against MFA inventory.
• Verification companies such as Oracle Moat, Integral Ad Science (IAS), DoubleVerify, and Pixalate were found to be monitoring ads on MFA websites. While their involvement could indicate attempts to track and potentially mitigate MFA exposure, it remains unclear whether their clients were actively leveraging their MFA avoidance solutions.

PMP Deals - A Potential Backdoor for MFA Inventory?

The ANA's 2023 study found that even Private Marketplace (PMP) deals, often touted as a premium and controlled environment, are not immune to MFA infiltration. Adalytics' research supports this finding, observing instances where vendors like Yieldmo, Pubmatic, TripleLift, and OpenX, all claiming to exclude MFA inventory from PMPs, were potentially transacting ads on MFA websites through these deals.

Retail Media Networks and Microsoft Audience Network Not Exempt

The study also uncovered the presence of MFA inventory within retail media networks, including Amazon's. This raises questions about the quality controls implemented by these networks and the potential for brands to unknowingly support MFA websites through their retail media campaigns. Additionally, thousands of brands were observed to have their ads served on MFA sites through the Microsoft Audience Network, despite the platform's claims of premium placements and brand-safe experiences.

Frequency Capping Failure Exposes Cost Inefficiencies

One of the most striking observations from the Adalytics research is the apparent failure of frequency capping on MFA websites. Many brands had their ads served hundreds, even thousands, of times to the same individual on a single page. This suggests that either media buyers are neglecting to set frequency caps or that the technology is unable to effectively implement them in environments with aggressive ad refreshes and bid duplication. This not only highlights potential technical limitations but also exposes a significant cost inefficiency for advertisers. Instead of reaching a wide audience, they end up repeatedly exposing the same few individuals to their ads, potentially at inflated costs.

Misaligned Incentives and the Need for Advertiser Action

The persistence of MFA websites, despite industry efforts to curb them, points to a fundamental problem: misaligned incentives within the advertising ecosystem. The emphasis on low CPMs and high impression volumes in media buying often drives agencies and vendors towards cheaper, yet less effective, inventory sources like MFA websites. As long as advertisers prioritize cost over quality and engagement, the market for MFA will continue to thrive.

Addressing the MFA Challenge: A Call for Transparency and Accountability

The findings of both the ANA and Adalytics studies highlight the urgent need for greater transparency and accountability within the digital advertising supply chain. Advertisers must:

• Verify vendor claims:  Don't blindly accept statements about MFA blocking capabilities. Actively monitor ad placements and hold vendors accountable for delivering on their promises.
• Prioritize quality over quantity: Shift focus from low CPMs to meaningful engagement and performance metrics. Consider the cost per unique user reached, not just cost per impression.
• Partner with reputable vendors:  Work with companies that prioritize quality inventory and transparency.  Utilize resources like DeepSee.io and Jounce Media to identify and avoid MFA websites.
• Engage in active stewardship: Take a proactive role in managing media investments. Don't solely rely on agencies. Educate internal teams and implement robust monitoring processes.

The fight against MFA websites requires a collective effort from all stakeholders. By demanding transparency, prioritizing quality, and taking an active role in their media investments, advertisers can drive positive change within the digital advertising ecosystem. Read this blog post to understand How Can BlokID Help Advertisers Avoid MFA Sites?

‍