Yahoo! Currently Running RTB Pilot On Right Media, Clarifies What The Publisher Needs To Know About RTB

Yahoo! on RTBYahoo! says that in AdExchanger.com's news round-up earlier today, there was a clear misinterpretation of the comment by Yahoo! VP Ramsey McGrory at yesterday's IAB meeting regarding concerns publishers should have about RTB.

McGrory tells AdExchanger.com that his point "was that the lost bid data that comes when an auction is broadcast to bidders and a bidder doesn't respond or responds and loses is very valuable data that a seller should fully consider before allowing bidders to have. If a bidder gets all the pings of the unsold for a publisher, over time they can calculate the sell through of a publisher and use that aggregate knowledge against the publisher in negotiations. The counter argument is that it helps the bidders bid more effectively if they know how often they'll see a user (call it a scarcity factor). Generally, we believe the publishers that are working with third parties providing RTB should be aware of what is happening with lost bid data and then decide whether they want to support. RTB has to protect the primary interest of the publisher. The marketplace without fruits and vegetables is just an empty parking lot."

AdExchanger.com's (a.k.a. My) assertion that Yahoo! may have a reason to criticize the benefits of RTB for failing to have an RTB solution was further rebutted by McGrory who said Yahoo! has been piloting RTB (via Right Media) for the last several months with more details to come.

By John Ebbert

2 Comments

  1. It's slightly more involved than that isn't it?

    For one, the Ad Exchange has to provide information about the winning bid amount (that was actually paid by the winner, not true value) to all bidders. Last I checked, not all Ad Exchanges do this -- they only provide the winning bid amount to the winner (obviously, they have to).

    And further, because RTB is a server-to-server protocol, the Bidder has to implement Cookie-Synching with the Ad Exchange in order to associate their own User IDs with the Bid Requests. While Cookie-Synching is certainly straightforward to implement, building all the enabling technology to reconcile user profiles across publishers and figure out how much they're worth requires a lot of effort.

    Having said that, a lot of buyers (DSPs and some Ad Networks in particular) have this technology (that is after all their special sauce).

    One possible solution for this problem is for the Ad Exchange to not disclose winning bid amounts to all bidders but instead to provide specialized bid guidance data and reports that can be used by the bidders to inform their bidding strategies.

    Reply
  2. .
    Interesting comment you make, Vivek ...

    Could it be that those buyers (the DSPs and some Ad Networks in particular, as mentioned) that 'luckily' have this additional technology, may simply be more compatible or, more 'in synch' with those exchanges that are providing such data?

    Reply

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