Prebid.org an organization that manages open source Prebid programmatic advertising solution announced that Index exchange (IX), one of the highly known supply-side platforms has joined them at the leader level. Mike O’Sullivan, Vice President of Product at IX has also joined the board.
Independent adtech firms are struggling to monetize the open web. As the regulations increase and third party cookies decline, the advertising ecosystem continues to face challenges in searching for new ways to track and monetize users on the open web. This reinforces the need for industry leaders to come together to build a collaborative solution otherwise there are high chances of intense competition from the duopoly like Google and Facebook.
Mike O’Sullivan said in a statement,
“The industry has very little time to solve for what’s to come after the third-party cookie, and we know collaboration is going to be an essential element of our path forward.”
“In addition to solving the third-party cookie challenge, publishers are increasingly trying to monetize in an omnichannel world, and with that comes complexity. Prebid.org is an excellent forum to discuss, design, and standardize potential solutions with a wide variety of stakeholders.”
Prebid.org is an industry-wide supported initiative to promote the fair, transparent, and efficient unified auction. Participating members contribute to the open-source projects like Prebid.js, Prebid Server, and Prebid Mobile. Index Exchange will be joining the Prebid.org team of 55 member companies that include CafeMedia, Magnite, MediaMath, OpenX, PubMatic, SpotX, StreamAMP, The Trade Desk, and Xandr.
Tom Levesque, President of Prebid.org said,
“We’re very excited to have Index Exchange join Prebid.org. The community is looking forward to their contributions and leadership across the ecosystem.”
“IX’s participation solidifies Prebid.org’s role as the best place for publishers, SSPs, DSPs, and buyers to create the future of the unified auction.”
Adtech companies are collaborating together to find a solution to third-party cookies after Google announced turning web trackers from Chrome by 2022. and recently, Index Exchange took Live Ramp cookieless identity products globally in an effort to connect publishers and advertisers.
Prebid Server is an open-source server-to-server header bidding solution. The prebid server gives publishers access to the largest header bidding marketplace. It’s free to use, transparent, and integrated with more than 150- demand partners and many managed solution partners. Michael Richardson, Senior Director, Product Line Management, AppNexus said,
It is an infrastructure of a streamlined adtech ecosystem that maximizes value for everyone, not just Google.
According to Prebid.org, a prebid server improves your page’s performance by running the header bidding auction on a server. This will improve your page’s load time, which should improve your users’ experience.
In recent years, it has grown alongside the programmatic market and extended support for native, video, apps, and connected TV. Sellers are used to the benefits of the unified auction offered by Prebid by adopting multiple wrappers across multiple formats. Now there are calls for simplicity from buy-side as well as platform-supported, server-side Prebid solutions to reduce the burden on publishers.
Publishers dealing with multiplying wrapper formats
Prebid’s biggest asset ‘open source’ is a limitation for some sellers. The open-source nature of Prebid leads to transparency, which means publishers should take the matter in their own hands or find an expert technology partner.
Publishers lack the expertise to manage Prebid and its open values and eventually, this has led some of them to embrace proprietary wrappers. But proprietary wrappers have their drawbacks – the disparity in counting methodology and payment can result in buyers and sellers struggling to transact. Also, some wrappers exclude certain types of demand from participating – in cases where internal teams haven’t updated or built third-party adapters to integrate proprietary wrappers into the auction.
Many publishers have been running Prebid, Amazon TAM, and Google Open Bidding simultaneously. As a result, DSPs are receiving impressions once from each SSP, multiplied by the wrappers. The growing dissatisfaction in the DSP community over duplication requests and declining to participate in Open Bidding led to initiating mandates that the SSP community and publishers pick a single wrapper format.
In the upcoming period, it will be clear how the industry adapts but many publishers are expected to choose Prebid as a primary wrapper.
Prebid server for Mobiles and CTV, Easy-to-use formats
A narrative was out in the early evolution of header bidding that “server-to-server was the future.” By running of an auction on the server-side than the user’s device- logic is- server-side heading creates a unified auction in a new environment, reduces latency, and improves user experience.
This approach has three issues – publishers couldn’t run easily as client-side, low participation of bidders, and required an additional user-match layer, reducing revenue.
Prebid Server is the solution to all these problems. Its 60 bidding partners show demand is no more a concern. Prebid sever will not need an additional user-match layer longer as cookies decommission, Prebid Server’s advantage in user identity only grows. It also allows header bidding in mobile applications and connected TV.
Many leading providers are investing in solutions to combine the Prebid server with their own technology making it easier for sellers to run server-side header bidding across all formats and retaining the benefits of an open-source wrapper.
Future of Prebid Server
It is exciting to witness the years of investment in Prebid paying off and the Prebid.org community growing. Publishers and Adtech partners working on the web inventory have adopted header bidding as an important technology in their monetization stack.
Looking forward to seeing how TV programmers and distributors leverage Prebid to optimize their business. It will be interesting to see how different wrappers start using the bid data, and apply data and machine algorithms to further optimize for higher revenues.
Publishers looking to contribute to Prebid and learn more about it, join Prebid.org as a member company.