"A healthy marketplace is a transparent marketplace Lack of transparency has been part of programmatic advertising nearly from the beginning. To understand this struggle, it's important to understand the early days of real-time bidding. Back in 2007-2008, I was an SVP and GM at MySpace (aka the Fox Audience Network, or FAN), which, at the time, had over 275 million global users and 60+ billion ad impressions a month."
"These companies told us they'd be willing to buy our audiences at $8-$25 CPMs. Some even offered to pay $100 CPMs for limited campaigns. Eureka! This demand was the inspiration we needed. We had to increase yield, so we created a client-side way to call each retargeting network first, before we called our ad server waterfall. Then we conducted the auction. However, this client-side bidding (which was the precursor to header bidding) didn't scale; it had to be moved to the server."
Eliminating universal Transaction IDs exemplifies persistent information asymmetry and obfuscation in programmatic advertising. When buyers and sellers lack the same transaction information, market fairness and business trust erode. A healthy marketplace requires transparency across both sides of the supply chain. Early real-time bidding relied on behavioral ad networks and client-side retargeting that promised high CPMs, which motivated publishers to create client-side auctions to increase yield. That client-side approach was the precursor to header bidding but did not scale and was migrated to server-side solutions. The shift to server-to-server connections coincided with the rise of SSPs, ad exchanges, and DSPs.
Read at AdExchanger
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