Last week, supply-side technology company Index Exchange got in trouble for using a secretive and controversial tactic called bid caching in its auction for at least a year. While Index has since stopped that practice, research from the programmatic consultancy Jounce Media revealed that it had used bid caching for 50% of its impressions.
And like that, bid caching – which had been a mostly unknown concept – became the ad tech industry’s latest hot topic.
This week, the AdExchanger editors discuss what it is, why it’s so controversial and who is harmed by the practice.
Bid caching also reflects broader industry concerns around transparency. In recent years, programmatic media buying has worked to overcome its reputation as a black box in which participants used convoluted processes to advantage themselves over others.
On the one hand, Index Exchange’s practice is a setback. On the other hand, its revelation means programmatic stakeholders are better educated, and any outrage keeps the pressure on the industry to ensure there’s transparency across the board.
Listen in on this week’s episode of “The Big Story” and crash the bid-caching party.