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Call me an ad tech geek or a programmatic fanboy, but I was gushing with excitement when I saw that the IAB Tech Lab had released for public comment an updated specification for OpenRTB 3.0. In addition, it seems a number of major ad tech players are participating in a beta.
As domain spoofing remains a huge ad fraud problem, I’ve been eager to see progress towards the digital signature initiative Ads.cert—the authentication upper-cut following up on the seller-validation gut-punch of Ads.txt.
But perhaps the biggest development with OpenRTB 3.0 is that it will not be reverse compatible with older versions of the standard. The IAB Tech Lab has cooked up a whole new beast because, as SVP and GM of IAB Tech Lab Dennis Buchheim commented in AdExchanger, “OpenRTB had evolved ‘organically,’ with organic not necessarily being a positive thing.”
He’s got a good point. A full refresh is not a bad thing, especially considering how much the programmatic landscape has changed since OpenRTB was introduced in 2010—think tech, speed, mediums such as audio.
Still, this is a huge break from the past, and a big deviation from IAB’s normal practices with standards. And it will require a great deal of code rewrites for DSPs and SSPs. Hoping for widespread adoption in early 2019, Buchheim says IAB Tech Lab will deliver mappings and open-source code to ease the transition on the industry.
But there’s a darker aspect that may slow down adoption—integrating OpenRTB 3.0 to add programmatic transparency may not be in the revenue interests of a lot of intermediary players.
D’ja Have to Let It Linger?
I wrote recently that despite the tight design of Ads.txt, domain spoofing is still a dependable route for fraudsters because the buy side is not being vigilant enough in scanning the files in real time. (Scam artists are also taking advantage of a lack of Ads.txt coverage in the mobile app and connected TV spaces to further rip off advertisers.)
Thing is, intermediary players almost always get their cut whether the advertiser is suckered or not—which has unfortunately incentivized the less morally scrupulous to look the other way.There’s a darker aspect that may slow down adoption—integrating OpenRTB 3.0 to add programmatic transparency may not be in the revenue interests of a lot of intermediary players.
By adding a certification layer on top of Ads.txt’s seller validation, Ads.cert really will stamp out a great deal of programmatic fraud. “Where’s the signature?” should be the new rallying cry of the buy side.
While no intermediary will admit outright to foul play (“How dare you besmirch the reputation of my exchange, sir!”), transparency is going to cause revenue pain, and it will probably put unsavory players out of business.
Good riddance, right? Yeah, but also expect serious heel-dragging when it comes to OpenRTB 3.0 adoption. It seems the onus will be on the buy side to demand that their partners are 3.0-compliant, though I can already see issues.
Buyer Be Informed
First is simply education—some buyers continue to get whacked by domain-spoofing because they don’t understand how Ads.txt works and that their buying platforms need to be scanning files alongside bidding. There’s a mistaken notion that just because the files exist, domain spoofing is impossible.
By adding a certification layer on top of Ads.txt’s seller validation, Ads.cert really will stamp out a great deal of programmatic fraud. “Where’s the signature?” should be the new rallying cry of the buy side.
Second, some agencies and other bidders are desperate to show spend to the end clients—they will ignore (or work with partners that ignore) Ads.txt files knowing full well that a great deal of inventory purchased will be fraudulent.
That’s not going to be possible with Ads.cert, as every impression purchased will have a signature similar to DKIM in email. Speedy adoption of 3.0 will not be in shady buyer interest either.
This is where premium publishers—especially big ones—really need to stick to their guns and refuse to work with any exchange that’s not on 3.0. In addition, they need to evangelize the new standard to all their advertisers. Buchcheim takes it a step further and suggests privacy laws like GDPR and the California Consumer Privacy Act of 2018 will drive the desire (or really need) for more secure supply chains.
“We are confident that the benefits of security, transparency, and a more trusted supply chain will motivate buyers and sellers to push for tech adoption of these new specs,” he said.
I hope he’s right—OpenRTB 3.0 will cause revenue havoc for some ad tech players, but ultimately it’s a giant leap forward for the programmatic space. Finally, we can re-establish trust.