Home Mobile Heads Up, App Publishers: DSPs Are Starting To Require App-Ads.Txt Files

Heads Up, App Publishers: DSPs Are Starting To Require App-Ads.Txt Files

SHARE:

After a slowish start, App.ads.txt adoption is surging, but there’s still an enormous longtail of apps that shrug their collective shoulders at the industry spec designed to cut down on app ad fraud.

App-ads.txt is an IAB Tech Lab initiative that involves app publishers providing text files listing the ad networks and other sources that are authorized to sell their inventory. It’s basically the app version of Ads.txt.

Fraud detection company Pixalate, which tracks Ads.txt and App-ads.txt compliance, found that use of App-ads.txt increased 177% between Q1 and Q2 and then hockeysticked 1,222% percent between the second quarter and now.

Overall, more than 7,000 iOS apps and over 46,000 apps in Google Play have made the move to place an App-ads.txt file, according to the IAB Tech Lab.

However, it’s clear that most apps aren’t embracing the spec, considering there are over 2 million apps apiece in the App Store and Google Play.

Focusing on the bigger fish

Just looking at the number of apps that haven’t adopted App-ads.txt doesn’t tell the full story.

For one, not all apps monetize through advertising, said Ian Trider, director of RTB platform operations at Centro. Second, he said, a relatively small number of apps are responsible for the majority of available inventory, and among these apps, there’s a much higher participation rate.

The goal is to protect the largest possible percentage of overall ad impressions in the programmatic ecosystem, rather than wooing myriad longtail apps to adopt the standard, said Sam Tingleff, CTO of the IAB Tech Lab.

“The question is, are the highest-scale apps protected and is the vast majority of impressions protected?” Tingleff said. “We’re already reaching the point at which DSPs cannot ignore this.”

Buyers and sellers unite

Demand-side platforms and exchanges, including Centro, Google’s DV360, The Trade Desk and AppNexus are beginning to enforce App-ads.txt, and sell-side players are cautioning their publishers that ignoring the spec could result in a revenue hit.

“Developers need to feel the pinch of reduced spend due to not having an App-Ads.txt file in place,” said Eric Bozinny, director of inventory quality at PubMatic, which is seeing buyers start pushing dollars toward authorized inventory.

Sixty-one percent of app spend goes to authorized apps selling through PubMatic, but only 24% of apps that monetize with advertising are authorized, which means developers that choose to adopt App-ads.txt files have an advantage during the transition.

In early September, Twitter-owned mobile ad exchange MoPub sent an email to its developer base with the subject line “[Action Needed] Implement APP-ADS.TXT.” The message warned app publishers that DSPs are starting to “build targeting capabilities specifically intended to target away from any supply source that does not list MoPub as an authorized direct seller within App-ads.txt.”

The DSPs getting serious about applying the standard should spur even more adoption, said Lisandro Lejano, a senior product manager at MoPub.

“At first, publishers were [taking] a wait-and-see approach,” he said. “They were waiting for DSPs to start enforcing.”

And now that they are, pubs are hopping to. As of mid-September, publisher adoption of App-ads.txt on MoPub’s platform was at 40% among its top apps, while Centro says that 70% of the traffic it’s seeing comes from publishers with App-ads.txt files.

Not a panacea

The App-ads.txt initiative has so far revealed where resellers are arbitraging inventory, said PubMatic’s Bozinny. The file acts as a signal of quality, he said, and provides a way to determine whether a reseller is authorized to sell inventory.

But if an app chooses not to publish a file, there’s still no easy way of knowing if a reseller is authorized to sell, Bozinny said.

And App-ads.txt is vulnerable to spoofing, just like its desktop sibling, Ads.txt. Simply checking to see if a file exists isn’t the same as checking its contents, because bad actors can fake an App-ads.txt file to make it look like their app is working with big exchanges.

Most people claim to check Ads.txt or App.ads.txt files, but the question is how thorough they are, said independent fraud researcher Augustine Fou.

“Was all or part of it plagiarized? Did you cross-reference every domain and seller ID on a non-sampled basis? Were those details provided to the client for independent verification?” Fou said. “If not, then don’t claim you fought fraud because you have App-ads.txt.”

Must Read

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Google Had Its Day In Court. Now, It’s Amazon’s Turn

Google won’t have to break up its ads business after being declared an online monopolist. Meanwhile, Amazon faces a lawsuit from the FTC alleging that it charged advertisers more than necessary for ecommerce ads.

The FTC’s Amazon Lawsuit Is Ad Tech’s History Of Opacity Repeating Itself

Buy-side experts said it’s another example of a Big Tech platform taking advantage of the lack of transparency built into programmatic ad auctions. And they’re not optimistic change is coming.

How The Fin Tech Clearco Finances Ecommerce Startups (Without Losing Its Shirt)

This week, the Commerce Media Newsletter catches up with a startup from outside the world of data-driven advertising, but with an interesting position when it comes to ecommerce advertising. That’s Clearco, a Canadian fin tech company founded in 2015.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
LOS ANGELES, CALIFORNIA - APRIL 26: Halo Collar CMO Seth Solomons attends a Celebration to Shine a Light On Dog Safety With Halo Collar on April 26, 2022 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Halo Collar)

How Halo Collar Uses Data And Incrementality To Raise Both Awareness And Sales

Halo Collar, a dog collar brand with direct-to-consumer origins, is preparing for its retail expansion by honing its first-party data strategy and incrementality measurement.

tech family cartoon technology family

CartographAI Launched To Help Advertisers Pick The Right Tech Vendors. Now, It’s Helping Vendors Market Themselves, Too

The company is launching an accelerator program to help tech vendors pitch their solutions in a way that makes sense to advertisers.

Comic: Weather Bar

Neuroscience And AI Are Transforming The Weather Company’s Measurement Stack

TWC is building a monetization model that treats weather as both a contextual and an emotional signal, and it’s using AI sales agents to bring it to market.