"Programmatic has become almost synonymous with opacity. Each platform has its own rules for running ad auctions, which means advertisers and publishers often don't know what's happening behind the scenes. To shine a light into those black boxes, the Media Rating Council (MRC) released new standards last week for digital ad auction transparency alongside a new voluntary certification for platforms that adhere to them."
"The purpose isn't to force every platform to use the same auction playbook or a single algorithm, Ron Pinelli, the MRC's SVP of digital research and standards, told AdExchanger. Instead, the standards create a consistent framework for explaining how auctions work, Pinelli said, and push platforms to disclose their "key decision variables" for determining results, as well as any changes to their auction rules."
"They have to share whether they run first-price, second-price or modified second-price auctions and whether factors beyond bid price - like demand source priority or seller-defined rules - influence which bid wins. Publishers and SSPs must reveal their use of reserve prices or pricing floors and apply the same floors to all buyers instead of setting different ones for different buyers."
Programmatic advertising has become largely opaque, with platforms running varied auction rules that obscure how bids win. The Media Rating Council introduced new digital ad auction transparency standards plus a voluntary certification for compliant platforms. The standards provide a consistent framework for explaining auction mechanics while encouraging platforms to disclose key decision variables and changes to auction rules. Platforms must reveal auction formats, demand source priorities, seller-defined rules, and the use of reserve prices or pricing floors applied equally to buyers. Certification requires adherence to specified auction best practices, including certain OpenRTB specifications, with broad industry support.
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