IAB Tech Lab forms council to tackle $5B bid duplication problem.
The IAB Tech Lab has formed a new standards group, the Programmatic Governance Council, to address infighting and solve complex issues in programmatic advertising. Led by OMD Worldwide's Ben Hovaness, the council's initial priority is to solve bid duplication, an issue estimated to cost the industry $5 billion annually. The group will also address measurement incrementality and ID bridging.
Key Takeaways
- The new Programmatic Governance Council, led by OMD's Ben Hovaness, aims to build consensus on standards to prevent unproductive infighting.
- The council’s top priority is solving bid duplication, a problem Hovaness estimates costs the programmatic industry $5 billion per year.
- Potential solutions for bid duplication include both transaction IDs and having DSPs perform multi-bidding.
- Future agenda items include improving measurement incrementality and establishing rules for responsible ID bridging.
Why It Matters
The council's formation is a direct response to public infighting and technical fragmentation that create widespread ad-tech inefficiencies. By targeting the $5B bid duplication problem first, the IAB is tackling an issue that erodes value for both the buy and sell sides. Standardizing a solution could strengthen programmatic's position against large, closed platforms that offer simpler measurement. The signal to watch is whether the council can secure broad agreement between DSPs and SSPs on a unified approach, moving the industry beyond disparate, company-specific solutions.
Read full article at adexchanger.com