Is the open auction dying - or is this its time to shine?

Recently there has been deepening analysis of the so-called ‘murkiness’ of the open auction, attributed to various factors such as a perceived lack of control, as well as exposure to questionable publishers or traffic.

However, we also know there is a clear path to navigate and unlock the potential and diversity of the open internet. The open marketplace is still important - it simply needs redefining and elevating.

One buy-side solution is to limit advertiser exposure and media investment to a select list of publishers, to shelter them from lower-quality open marketplace environments such as Made For Advertising (MFA) sites. However, in reality this limits the potential of the open auction to reach additional valuable audiences and specialist sites, and harness AI technology to optimise the delivery of high media quality impressions.

Also, only a few percentage points separates the proportion of ad spend spent on MFAs via open auction (19%) versus via PMPs (14%), highlighting why ‘publisher allow ‘lists aren’t a systematic solution across the open auction and deal management. When we compare these MFA percentages, the only real difference between the open auction and PMPs is the price point. In practice, advertisers can find themselves paying up to three times as much for the same quality, but arguably less relevant inventory through PMPs, because, as the name ‘private’ suggests, these deals are perceived to be exclusive.

Deeper placement level analysis for advanced traffic shaping

Any trading environment can be vulnerable, but with the right partners and AI-powered technology on the supply side, programmatic deals can deliver deeper placement level and attention optimisation at scale. This approach makes campaigns more efficient and provides more advanced controls for the open marketplace, by focusing on the scientific and dynamic measurement of ad placements and media quality.

On the demand side, many of our buyers are specifically seeking out opportunities across the breadth of the open internet, which gives them access to valuable verticals that are otherwise neglected - including specialist websites where users are deeply engaged with specific content, such as healthcare, automotive or tourism, to name just a few.

These sites not only offer diverse, valuable audiences and high-quality inventory, but also play a crucial role in sustaining independent journalism amid the rise of walled gardens.

Curation: enabling the open internet to stay open for everyone

Ensuring a rich and well-funded open internet and enabling consumers to engage with various content types that are relevant to them, while maintaining the highest privacy standards, requires advanced programmatic curation strategies and technology.

Programmatic curation is the upstream smart solution to make the open auction work safely and effectively at scale. At Onetag, we remove all the programmatic wastage at source, and our AI curates the media quality and outcomes our partners require. Our OpenVerified algorithmic solution learns to deliver a stream of curated, high-quality impressions for each campaign, providing DSPs with the true assist they need to realise the potential value in the open marketplace.

This AI-powered programmatic technology ensures that impressions are delivered across the ecosystem where they provide the highest media quality and chances of conversion - thus helping to unlock placements that might otherwise be dismissed as waste.

At Onetag, all of this happens without the need for a single cookie. Implementation is also via an easy one-time set-up with no upfront commitment or additional cost. With future-proof plug-and-play solutions like OpenVerified, our advice for marketers who are concerned about the open auction environment is to test and see for themselves how AI-powered programmatic technology can help them fall in love with the marketplace again.

Curation enables the supply side to achieve its true monetization potential and buyers gain access to the full breadth of quality audiences and premium content environments. Publishers benefit from new revenue streams as media curation unlocks the hidden value of inventory and increases user matching for greater first-party data addressability. These are exciting times for online advertising and we’re proud to be playing our part in ensuring that the open internet continues to flourish.

Also published in: LinkedIn