Image of Forbes website using www3 lack of transparency in programmatic advertising

The Role of Transparency in Programmatic Ad Ecosystem

Recent revelations have shed light on a disconcerting situation where programmatic ads from prominent brands like McDonald’s, Disney, Microsoft, JPMorgan Chase, American Express, the New York Times and Wall Street Journal appeared unintentionally on a website primarily designed for advertising purposes (MFA), operated by Forbes from 2017 to 2021. Notably, all six major holding companies—WPP, Omnicom, Publicis, Interpublic, Havas, and Dentsu—also engaged in purchasing ad space on this platform.

The existence of such MFA websites is not entirely novel. They have lurked within the digital landscape for years, typically crafted by dubious entities aiming to siphon advertising investments away from legitimate publishers, often with some degree of success. These sites, rich in ads but poor in content quality, constitute about 15% of the total ad spend.

While it may come as a surprise that a reputable publisher like Forbes was involved, it’s less astonishing that almost all agency networks contributed to ad placements on this platform. This participation underscores the intricate and opaque nature of advertising holding companies’ systems, processes, and behaviors. These complexities have perpetuated transparency issues in adtech, allowing them to persist and, at times, unintentionally impede efforts for change and innovation.

Forbes was found of misleading advertisers by directing them to purchase media on a covert, spam-laden subdomain (www3.forbes.com) instead of Forbes.com.

Forbes swiftly closed the site following inquiries from The Wall Street Journal. The www3 subdomain, operational since at least May 2017, repackaged Forbes articles into extensive formats like listicles and slideshows, bombarding readers with an unusually high volume of ad impressions. Unlike Forbes’s main site, this subdomain lacked subscription paywalls and blocked search engine indexing, effectively concealing its content from organic searches.

Many major brands, including Microsoft, Disney, JPMorgan Chase, Johnson & Johnson, Mercedes-Benz, Oracle, Fidelity, Marriott, Ford, and United Airlines, unwittingly purchased media on this subdomain, assuming it was legitimate ad space on Forbes.com. Advertisers were shocked to discover that a significant portion of their impressions were actually served on the www3 subdomain, contrary to their intentions.

The exposure of this scheme prompted calls for increased vigilance and a reevaluation of advertising practices. Advertisers expressed frustration, demanding refunds for ads improperly placed on the subdomain, which not only lacked the prestige of Forbes’s main site but also failed to reach their intended audience effectively. Despite efforts to block the subdomain, some ads still found their way onto the site, further complicating the matter.

Encouraging a more transparent culture Programmatic ad buying  

The saga serves as a cautionary tale, highlighting the importance of transparency and due diligence in the digital advertising ecosystem. As the industry grapples with these challenges, stakeholders must collaborate to establish clearer guidelines and practices, ensuring that advertisers’ investments are safeguarded and that consumers are presented with quality content in alignment with ethical standards.

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