Digiday+ Member Article

At the Digiday Programmatic Marketing Summit earlier this June in New Orleans, we surveyed 46 client-side and agency marketers about their plans to reduce arbitrage in digital advertising. Check out our earlier research on how important it is to European marketers to address arbitrage here. Learn more about our upcoming events here.

Quick takeaways:

  • Forty-three percent of advertisers surveyed said they would only buy ad inventory from ads.txt-verified sellers.
  • Roughly two-thirds of advertisers expect ads.txt to do more to reduce arbitrage than the General Data Protection Regulation.

Arbitrage in digital advertising, whether in the media or data form, is one of the industry’s great ills. It stifles transparency while enabling middlemen to erode advertisers’ budgets by selling marked-up data and profit on a publisher’s inventory. Video advertising, which advertisers will spend $15.42 billion on in 2018, is particularly susceptible to arbitrage. Part of the issue is marketers don’t collectively back one way of combating arbitrage, according to Digiday’s research. The most common tactics marketers employ are reducing their use of third-party data and buying inventory from ads.txt-verified sellers in programmatic exchanges, both at 43 percent adoption, while only 10 percent of marketers are doing nothing.

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