The automated arms race against Google continues.
Two additional demand-side platforms (DSPs) have removed Google Open Bidding for advertisers.
Yahoo and Amobee have both followed in the footsteps of The Trade Desk, which first began shutting down Google Open Bidding from its platform in February.
So, what exactly does this mean for advertisers? Let’s dive into the motivations and implications of these decisions.
Why remove Google Open Bidding?
While some might be quick to think that Open Bidding’s removal is a direct blow to Google, experts say this may not be the case.
DSP has multiple motives for removing Google Open Bidding on their platform. These include (but are not limited to):
- Google gives redundant impressions
- Open bids charge a 5% fee for this service
- Google’s ongoing scrutiny from US and European regulators
In short, the motives here are money and reputation.
DSPs like Yahoo and Amobi Looking to reduce inefficiencies that reduce profitability.
In February ad technology company Jounce Media reported that approximately 13% of all automated bid requests were initiated by Open Bidding, Google Ads and DV360 (Google platform).
With this kind of effect on bid requests, there is duplication of bids.
What happens with duplicate bids? I think we all know the answer: higher costs for everyone.
On the subject of data deduplication, Chris Kane, Founder Jounce Mediastates, “And if you’re doing duplicates, removing Open Bidding is by far the easiest and most natural first option.”
What does this mean for the industry
Three major DSPs have removed the offer for Google Open Bidding, which may lead other DSPs to follow suit.
These moves also show that the tech industry is less dependent on Google for revenue.
The software ecosystem is growing. By removing one of the major players in purchasing advertising supplies, DSPs can spend more time and money optimizing the digital supply chain.
So, what exactly could this mean for advertisers?
As signal service providers diversify their available ad offering, your ad visibility may expand in the future. The more diverse the inventory, the more network you can cast in getting your message across.
Additionally, with Google Open Bidding removed, you may see a slight decrease in your CPM, or CPC. This means your advertising dollars go further, and you can reach your target audience more than before.
While Google is a force to be reckoned with, advertising technology is taking its revenge on them.
Trade Desk, Yahoo and Amobee are among the first to remove Google Open Bidding from their offering. Others will likely follow this trend.
With Open Bid Declined, advertisers may see additional new opportunities in inventory for automated advertising.
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