Programmatic Peacekeeping

Programmatic Peacekeeping

How the Programmatic Governance Council Aims to Bring Order to a Complex Space

The ad-tech industry has long been plagued by infighting and disagreements over standards and best practices. The debate over transaction IDs, in particular, has sparked heated discussions and LinkedIn flame wars. However, a new effort aims to bring peace to the programmatic ecosystem. The Programmatic Governance Council, led by OMD Worldwide Chief Media Officer Ben Hovaness, seeks to bring together industry stakeholders to discuss and resolve differences before they escalate into full-blown conflicts.

The Problem: Industry Infighting and Complexity

The ad-tech industry is notorious for its complexity, with numerous players and competing interests at play. Standards can simplify and bring order to a complex space, but deciding on what standard to follow can lead to a whole lot of conflict. The disagreements over transaction IDs are a prime example. On one hand, transaction IDs can help reduce auction duplication and improve the efficiency of programmatic advertising. On the other hand, some argue that they can also limit the ability of demand-side platforms (DSPs) to bid on multiple supply-side platforms (SSPs).

The High Cost of Infighting

The infighting and disagreements within the ad-tech industry have real-world consequences. For instance, bid duplication is estimated to cost the industry $5 billion a year. This issue arises when multiple bid requests are sent for the same ad impression, resulting in unnecessary and wasteful bidding. The industry needs to come together to address this problem and find solutions that benefit all stakeholders.

The Solution: Programmatic Governance Council

The Programmatic Governance Council is a newly formed standards organization that aims to bring people together from different companies and with different points of view. The council’s goal is to facilitate open and honest discussions about industry issues, with the ultimate goal of finding solutions that benefit everyone.

A Leader in Programmatic Peacekeeping

Ben Hovaness, the leader of the Programmatic Governance Council, has a deep understanding of the ad-tech industry and its complexities. With his experience as OMD Worldwide Chief Media Officer, Hovaness is well-positioned to bring together industry stakeholders and facilitate meaningful discussions. The council’s initial meetings have been productive, with a focus on solving for bid duplication and other industry issues.

Top Priority: Solving Bid Duplication

Bid duplication is a critical issue that the Programmatic Governance Council is tackling head-on. The problem with bid duplication is that it’s not a solo act; it requires collaboration and cooperation between DSPs, SSPs, and other industry stakeholders. The council is exploring potential solutions, including transaction IDs, multi-bidding, and other innovative approaches.

Transaction IDs: A Potential Solution

Transaction IDs have been proposed as one way to address bid duplication. By assigning a unique ID to each transaction, advertisers and publishers can better track and manage bid requests. However, transaction IDs are not a silver bullet; they are just one part of a broader solution that requires industry-wide cooperation.

Multi-Bidding: Another Potential Solution

Multi-bidding, or submitting multiple bids to SSPs, is another approach to addressing bid duplication. The idea is that a DSP sending three bids back with one bid request should be less wasteful than an SSP sending three bid requests. However, this approach also requires careful consideration and coordination between DSPs and SSPs.

Insights and Analysis

The Programmatic Governance Council’s efforts to address bid duplication and other industry issues represent a critical step towards industry consolidation and maturity. By bringing together industry stakeholders and facilitating open discussions, the council can help reduce the “ad-tech tax” and improve the efficiency of programmatic advertising.

Reducing the Ad-Tech Tax

The ad-tech tax refers to the unnecessary costs and inefficiencies that plague the programmatic ecosystem. By addressing bid duplication and other industry issues, the Programmatic Governance Council can help reduce these costs and improve the overall health of the industry.

Balancing Competing Interests

The success of the Programmatic Governance Council will depend on its ability to balance competing interests and priorities within the industry. The council must navigate complex issues like bid duplication, transaction IDs, and multi-bidding, all while ensuring that solutions benefit all stakeholders.

Conclusion

The Programmatic Governance Council is a critical initiative that aims to bring peace and order to the programmatic ecosystem. By facilitating open discussions and collaboration between industry stakeholders, the council can help address critical issues like bid duplication and reduce the ad-tech tax. As the industry continues to evolve, the council’s efforts will be essential in shaping the future of programmatic advertising. With Ben Hovaness at the helm, the Programmatic Governance Council is well-positioned to make a meaningful impact and bring about positive change to the industry.

In related news, the industry has also been exploring other innovative solutions, such as streaming platforms embracing vertical video. However, the Programmatic Governance Council’s focus on collaboration and cooperation sets it apart as a critical effort to address industry-wide issues. Additionally, the council’s work is closely related to other industry initiatives, such as audience buying and the risks of over-buying. By addressing these issues and more, the Programmatic Governance Council can help create a more efficient and effective programmatic ecosystem.