Programmatic marketing technology business MediaMath is making its suppliers complete and sign a checklist before working with them, in an attempt to clear up murky auction games.
The US-founded firm, which is headed up in Australia by country manager Yun Yip, said it has a critical role in maintaining the integrity of the market and that instead of waiting for government intervention to bring about true transparency and accountability, it must take matters into its own hands.
The business yesterday sent an open to its suppliers to share its stance and to distribute its checklist which includes tickable sentences such as “company filters their supply with an MRC accredited fraud vendor”, as well as agreeing that they will not “attempt in any way to mislead, deceive, or otherwise engage in practices that are inconsistent with these principles”.
“Marketers are tired of games, and don’t want to hear yet another explanation about something obscure in the auction that has inadvertently subtracted value from their marketing efforts,” the letter said.
“In response, MediaMath is rolling out policies and procedures to make even more clear our current prohibitions against auction manipulation, and any supply side tactics that solely exist to unduly disadvantage other SSPs.
“We believe that SSPs can add the most value when they put their energy towards improving marketer outcomes, instead of myopically focusing on killing each other at any cost.”
MediaMath said where there is money and limited consequences, there will exist the risk of abuse and as it relates to its own platform, it has had to make those consequences far more clear and unambiguous.
Its says establishing a Code of Conduct starts with open participation, but if any member violates its polices, or even “the spirit of the letter”, then that platform is “out of the club”.
“There will be a defined penalty of cessation of spend for an extended period of time, without early release, and reentrance is only accepted after extensive vetting,” the letter said.
“There are no third chances. Protecting our customers, end consumers and the industry itself necessitates taking this strong stance.”
The move follows news that global ad marketplace Index Exchange was bid caching for more than a year, but did not make buyers aware until a recent blog post.
Bid Caching involves holding onto a bid when a buyer loses a programmatic auction and then trying to use it to serve an ad moments later in a piece of content.
The move allowed Index Exchange to gain market share and deliver higher CPMs to publishers, but has angered media buyers and rival exchanges, according to AdExchanger.
Check out the full letter from MediaMath below:
Dear Partner,
It's been a challenging time for our industry, and for digital media more broadly: Congress continues to probe the activities of social media giants, again putting tech companies in the hot seat. The role of the “platform company” was spotlighted yet again as part of the seismic shift taking place in the marketing world. You can see aftershocks of this throughout ad tech: although not social platforms, our respective companies happen to be platforms as well, and we each have a critical role in maintaining the integrity of our own market. At risk is the ongoing sustainability of our industry. We can’t wait for government intervention to bring about true transparency and accountability.
Fighting over market share has diminishing returns when the pie starts shrinking due to an erosion of trust. Look elsewhere for an analogy: who “trusts” the cryptocurrency markets right now? We are facing a choice: clean up our act as an industry or hand the keys over to the Walled Gardens, who can apparently afford to apologize and move on when they experience lapses.
Marketers are tired of games, and don’t want to hear yet another explanation about something obscure in the auction that has inadvertently subtracted value from their marketing efforts. In response, MediaMath is rolling out policies and procedures to make even more clear our current prohibitions against auction manipulation, and any supply side tactics that solely exist to unduly disadvantage other SSPs. We believe that SSPs can add the most value when they put their energy towards improving marketer outcomes, instead of myopically focusing on killing each other at any cost.
We understand that there is tough competition on the supply side. That’s good! Finding new ways to make marketing work better, and the innovation it spurs is what makes all of our jobs exciting. Our industry is stronger when we align towards common goals. Novel developments that update auction mechanics or OpenRTB that allow marketers to better deliver their message to consumers in a clean, non-intrusive, low-load environment are unquestionably a good thing. Through our industry associations, let’s come together to make it happen via a transparent standard.
Where there is money and limited consequences, there will exist the risk of abuse. As it relates to our platform, we are making those consequences far more clear and unambiguous. Establishing a Code of Conduct starts with open participation, but if any member violates these polices, or even the spirit of this letter, that platform is out of the club. There will be a defined penalty of cessation of spend for an extended period of time, without early release, and reentrance is only accepted after extensive vetting. There are no third chances. Protecting our customers, end consumers and the industry itself necessitates taking this strong stance.
Furthermore, if you see something, say something. If you run a clean shop, but others engage in old, questionable practices, tell us. Let the buyside level the playing field. If you are honest about a tactic your platform employs, or are unsure about a practice, also say something. Just as you do at the border, when in doubt, declare.
To continue your eligibility for MediaMath’s Open Auction, please confirm your adherence to the principles outlined on this linked form.
We look forward to your anticipated cooperation.
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