The programmatic arms race with Google continues.
Two other demand-side platforms (DSPs) have already de-supplied Google’s Open Bidding to advertisers.
Yahoo and Amobee followed The Trade Desk’s lead in deprecating Google Open Bidding on their platforms in February.
So what exactly does this mean for advertisers? Let’s dive into the motivation and impact of these decisions.
Why remove Google Open Bidding?
While some may be quick to see the cancellation of the Open Auction as a direct blow to Google, experts say that may not be the case.
DSP has multiple incentives to remove Google Open Bidding on its platform. These include (but are not limited to):
- Google serves excess impressions
- Open Bidding charges 5% for the service
- Continued scrutiny of Google from U.S. and European regulators
In short, the motivation here is money and fame.
DSP such as Yahoo and Amobee Seeking to reduce inefficiencies that reduce profitability.
In February, ad tech firm Jounce Media reported that nearly 13 percent of programmatic bid requests were initiated by Open Bidding, Google Ads, and DV360 (Google’s platform).
Due to this effect on bid requests, there are duplicate bids.
What happens to duplicate bids? I think we all know the answer: it costs more for everyone.
On the topic of deduplication, Chris Kane, Founder jump mediastates, “If you’re doing deduplication, Deleting Open Bidding is by far the easiest and most natural first choice.”
What this means for the industry
Three large DSPs have already de-offered Google Open Bidding, which may lead other DSPs to follow suit.
The moves also show that the tech industry is reducing its reliance on Google to generate revenue.
The programmatic ecosystem is growing. By removing one of the most prominent players in ad supply buying, DSPs can spend more time and money optimizing the digital supply chain.
So what does this mean for advertisers?
The visibility of your ads may expand in the future as DSPs diversify the ad supply available. The more diverse your inventory, the larger the net you can cast as you spread your message.
Also, you may see a slight decrease in CPM or CPC after removing Google Open Bidding. This means your ad revenue can go further and you can reach a larger target audience than ever before.
While Google is a force to be reckoned with, ad tech is retaliating against them.
The Trade Desk, Yahoo and Amobee were among the first to remove Google Open Bidding from their offerings. Others may follow the trend.
As the Open Auction declines, advertisers may see new and additional programmatic inventory opportunities.
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