Home The Sell Sider MediaMath’s Tough Love Doesn’t Go Far Enough

MediaMath’s Tough Love Doesn’t Go Far Enough

SHARE:

The Sell Sider” is a column written by the sell side of the digital media community.

Today’s column is written by Jochen Schlosser, chief strategy officer at Adform.

MediaMath recently announced it would stop buying from supply partners that manipulate auctions via bid caching, wrapper misuse and other tactics.

This is a welcome move from MediaMath and yet another step in creating an open and transparent ecosystem. However, the industry needs to go even further.

Continuous supply partner management, research and optimization efforts are an absolute necessity for our industry, and an agreed-upon standardized code of conduct for suppliers is a worthy pursuit within the ad tech space. MediaMath’s code of conduct represents a strong start in this direction, but one critical aspect is missing: management of traffic duplication.

In many ways, traffic duplication, through practices such as header bidding, is the greatest auction game of all, and it’s a concern for many reasons. By running parallel auctions to largely duplicated demand pools, sellers create false liquidity and thereby increase yield.

This has negative effects.

For platforms, it results in additional QPS and infrastructure costs. For end buyers, this duplication can lead to problems such as competing against oneself in auctions. Ultimately, traffic duplication makes it hard to judge the optimal supply path. To address these problems when duplication exists, buyers should be able to select the supply path based on take rates, speed, quality, performance and other factors.

Our industry can address the challenge of traffic duplication through proper supply-path optimization. The main challenge for ad tech companies is detecting duplicate requests hitting their servers. The industry, through IAB’s OpenRTB 2.5 protocol, has introduced the Source Transaction ID, which is a unique ID per auction that must be common across all participants in the bid request, such as multiple exchanges. This ID enables the identification of duplicate requests resulting from the same header wrapper, site and placement.

To date, only a handful of supply-side platforms (SSPs) have adopted the Source Transaction ID with limited overlap, making the IDs essentially useless. The ID needs to be generated within the header bidding wrapper on the publisher’s page. Therefore, its utility depends on adoption by the main header wrappers ­– Prebid.org, Index Exchange’s Header Tag and Google’s server-side solution, EBDA ­– to pass this information downstream.

It is incumbent upon Prebid.org, Index Exchange and Google to push adoption of the Source Transaction ID for the programmatic ecosystem as a whole to scale. Adoption of the ID would eliminate the need to pass along infrastructure costs and instead enable the supply chain to give this money back to the advertisers. Unfortunately, SSPs and wrapper solutions lack a direct incentive to allocate resources to pass the Source Transaction ID.

Our industry must commit to the adoption of Source Transaction IDs and other initiatives that bring transparency and clarity to the digital supply chain. MediaMath is on the right path. As an industry, we need to go a step further.

Follow Adform (@adform) and AdExchanger (@adexchanger) on Twitter.

Must Read

Don’t Worry About Netflix – It’s Doing Fine Without Warner Bros. Discovery

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.

Paramount’s Upfront Pitch Is About Three Things

Paramount is merging the ad tech stacks behind Paramount+ and Pluto TV, releasing a new performance product, offering more control over ad placements and introducing dynamic ad insertion in live sports.

Hard Truths For Retail Media At The IAB Connected Commerce Summit

The IAB’s Connected Commerce event in New York City this week felt to me like the retail media industry’s first sit-down explanation to a child who is now a “big kid” and must act accordingly.

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

Meta Is Launching An Easy Button For CAPI

Meta is simplifying its CAPI setup and teaching its pixel new tricks, including adding an AI-powered feature that automatically pulls in data from an advertiser’s website.

TelevisaUnivision Joins The Streaming Self-Service Bandwagon

TelevisaUnivision is the latest TV publisher to join the self-serve trend that’s rising in popularity across connected TV advertising. Its streaming inventory is now available to buy through fullthrottle.ai’s self-serve platform. The collaboration includes an ad bidder designed to improve both targeting and measurement.

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

For Google Advertisers Who Overpaid The Monopoly – Don’t Hate, Arbitrate

Law firm Keller Postman is leading mass arbitration suits against Google, seeking advertiser damages for alleged monopoly overpricing. The total available pot is a quarter-trillion dollars.