Home Ad Exchange News DSPs Have A Transparency Problem Too; Amazon’s One-Click Shopping Patent Expires In September

DSPs Have A Transparency Problem Too; Amazon’s One-Click Shopping Patent Expires In September

SHARE:

Here’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

TL;DR

Supply-side companies have taken heat lately over nontransparent fees, but demand-side platforms (DSPs) aren’t off the hook either. DSPs squeeze ad buyers on extra fees in three ways: by defining their own clearing price, marking up additional audience segments and arbitraging inventory. As with previous brand and ad agency trust issues that have blighted programmatic buying, DSPs are able to work in fees because of unclear contractual language and nondisclosure agreements around pricing. “The complexity and lack of stringent controls and technical understanding allows for a greater leeway for many vendors to take as much as they can, far and above what they state,” one ad tech exec told Digiday.

When One Is Better Than Two

Amazon received a US patent in 1999 on its one-click shopping product, which stores payment info and delivery preferences to offer a true buy-now button to return shoppers. That patent – which Amazon successfully used to shut down Barnes & Noble’s one-click button – expires in September. “It’s been a drag on innovation and conversion rates across the web now for almost two decades,” writes Distilled CEO Will Critchlow. Apple has one-click buying, but it pays an undisclosed (and likely lucrative) licensing fee for the privilege. “If you have an ecommerce site, you should be preparing for the single-click world where many customers will likely come to expect ‘frictionless transactions’ everywhere including mobile applications,” wrote intellectual property attorney Richard Mescher at a legal news site earlier this year.

You Are What You Eat

The British supermarket chain Sainsbury’s is revamping its recruitment ads and outreach to better compete with the likes of Google, Facebook and Amazon. “Tech people tend to think those three are the most exciting places to work, but Sainsbury’s has so much more data facets to its business – from shoppers and farms to Argos – and that makes us far more interesting to work for,” the company’s chief data officer said at the DataIQ Summit in London on Wednesday. Aside from needing a strong data foundation for its own advertising and operations, Amazon and Google are making a major push into grocery shopping and food delivery. More at Marketing Week.

Full Bloom

Google is turning its attention to photo uploads, specifically on its cloud-based Google Photos app, which now has 500 million monthly active users uploading 1.5 billion pictures per day. Why double down on a free product? To keep users inside its walled garden, enrich the data within those walls and feed it back to a robust AI platform that powers its entire ecosystem. “Even if Google doesn’t make any money directly from something that it offers, it’s still gathering data,” said Pedro Domingos, a University of Washington computer science professor. “Increasingly these days, what people perceive at companies is that data is one of your biggest assets.” Photos is also part of Google’s back door into a social world dominated by visual sharing platforms like Snapchat, Instagram and Facebook. More at The Ringer.

But Wait, There’s More!

You’re Hired!

Must Read

Minute Media’s Latest Acquisition Brings Automated Content Creation To Its Online Sports Video Network

As display falters, Minute Media is acquiring AI tech that cuts longer-form video content and full-length games into bite-size clips.

With GAM Going Direct To Buyers, SPO Is The New Normal

GAM’s dinner with ad agencies sparked speculation that Google is preparing to spin off its bundled SSP and ad server as a remedy to its ad tech monopoly. But Google says it’s just part of the trend of SSPs going direct to buyers.

Google’s Proposed Fix To Its Ad Tech Monopoly Is At Odds With The DOJ’s Remedies

Late Friday evening, Google filed its proposed remedies to its ad tech monopoly to District Court Judge Leonie Brinkema, and unsurprisingly, they’re rather mild – and very different from what the Department of Justice is looking for.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Lance Armstrong

Exclusive: Lance Armstrong’s VC Firm Invests In AI-Powered Health Care Ad Tech Startup BranchLab

BranchLab, an AI startup for healthcare marketers, just added a new high-profile backer: Lance Armstrong’s Next Ventures, which invests in health and wellness startups.

Comic: Gamechanger (Google lost the DOJ's search antitrust case)

Judge Mehta’s Remedies For Google’s Search Monopoly Won’t Cure What Ails Publishers

Remedies in the federal search antitrust case against Google landed with a thud earlier this week. Most publishers and ad industry pundits were sorely disappointed.

Conversion APIs Are Becoming Table Stakes – But Not All Brands Have Bought In

CAPI integrations have moved from a nice-to-have to a necessity for anyone operating within walled garden environments. Now they’re laying the groundwork for an outcomes-driven ad ecosystem.