Category News • Date : Dec 20, 2017 • 314 Views
3 Ways ads.txt Benefits the Entire Digital Advertising Industry
Earlier this year, the Interactive Advertising Bureau’s Tech Lab introduced an initiative called ads.txt, which stands for Authorized Digital Sellers, to increase transparency in the digital advertising ecosystem. Michael Korsunsky, CMO at MGID talks about how ads.txt can benefit the industry
Earlier this year, the Interactive Advertising Bureau’s Tech Lab introduced an initiative called ads.txt, which stands for Authorized Digital Sellers, to increase transparency in the digital advertising ecosystem. How does it work? Publishers place the IAB-approved text file on their web servers to communicate which companies are authorized to sell their inventory. On the exchange side, sellers can also add ads.txt files to their sites to denote which publisher’s inventory they are authorized to sell.
As with any new industry-wide development, ads.txt will take time to reach its full potential – which will require mass adoption-but it has already had a positive impact on the whole digital advertising ecosystem. Here are three of the most significant ways ads.txt benefits the industry:
- It eliminates shady supply-side platforms (SSPs) and helps equalize revenue distribution and cost throughout the industry. Before ads.txt, ad buyers had no way to know which SSPs were authorized to sell a publisher’s inventory, resulting in a lot of unauthorized reselling. In theory, unauthorized reselling would only damage the reputation of the SSPs engaging in the shady practice, but sadly it can also negatively impact the publisher whose inventory is being sold illegitimately. Now, publishers have a way to communicate who is authorized to sell its ad inventory clearly, and any illegitimate reselling is blamed solely on the SSP . As such, we’re starting to see an exodus of illegitimate SSPs from the market.
- It helps improve inventory quality while restoring trust in programmatic. Unauthorized reselling has been a major paint point for programmatic advertising, causing many advertisers to lose faith in the process altogether. In theory, every programmatic ad exchange should have verified inventory legitimacy all along , but that hasn’t happened. And even those with a robust verification process in place could easily slip up and let in illegitimate supply from untrustworthy ad networks. With ads.txt, buyers have a way to verify that a programmatic exchange is authorized to sell inventory for any given publisher, which helps restore trust in the process while simultaneously ensuring better quality inventory across the market.
- It will inspire more solutions of this nature to continue changing the industry for the better. Trust and accountability issues have plagued the digital advertising industry for years-and it’s not just unauthorized reselling that’s left advertisers with a sour taste in their mouths. We’ve seen major players like Google bear the brunt of advertiser frustration with issues related to brand safety after serving ads next to controversial and offensive content. We’ve seen Facebook in hot water for overestimating the average time spent watching videos by as much as 80 percent. Now that ads.txt is helping clean up inventory and rebuild trust in online advertising , it is only a matter of time before we see more solutions of this nature designed to alleviate similar pain points.
Everyone in the larger digital advertising ecosystem should be happy about ads.txt. It has been a long time coming and is already making a substantial impact in terms of holding all advertising professionals – both buyers and sellers – accountable.I look forward to seeing increased adoption of ads.txt in the coming months, and to the emergence of more initiatives of this nature.
Article taken from: https://www.martechadvisor.com/articles/ads/3-ways-adstxt-benefits-the-entire-digital-advertising-industry/