more DSPs cast off Google Open Bidding

The program arms race against Google continues.

Two additional demand-side platforms (DSPs) have removed the Google Open Bidding offer for advertisers.

Yahoo and Amobee followed The Trade Desk, which in February first triggered the abandonment of Google’s open offering on its platform.

So what exactly does this mean for advertisers? Let’s delve into the motivation and consequences of these decisions.

Why remove Google Open Bidding?

While some may be quick to believe that removing open bids is a direct blow to Google, experts say it may not be.

DSPs have several motives to remove Google Open Bidding on their platform. These include (but are not limited to):

• Google is showing redundant impressions
• Open bids for this service charge a 5% commission
• Further review of Google by U.S. and European regulators

In short, the motives here are money and reputation.

DSP, such as e.g. Yahoo in Amobee they try to reduce inefficiencies that reduce profitability.

In February, advertising technology company Jounce Media reported that nearly 13% of all program bid requests were triggered by Open Bidding and Google Ads, and DV360 (Google platform).

This type of impact on bid requirements leads to duplication of bids.

What happens to duplicate offers? I think we all know the answer: higher costs for everyone.

On the subject of deduplication Chris Kane, founder Jounce Mediahe says, “And if you’re eliminating duplication, removing open bids is by far the easiest and most natural first choice.”

What this means for the industry

Three large DSPs have removed Google’s open bidding offer, which could lead to other DSPs following suit.

These moves also show that the technology industry is reducing its dependence on Google to generate revenue.

The program ecosystem is growing. By removing one of the most prominent players in buying an ad offering, DSPs can spend more time and money optimizing their digital supply chain.

So what can this mean specifically for advertisers?

As DSPs diversify the available ad offer, the visibility of your ads may increase in the future. The more diverse the inventory, the wider the network you can submit to download your message.

Additionally, by removing Google’s open bidding, you may notice a slight decrease in CPMs or CPCs. This means that your advertising dollars go further and you can reach more target audiences than before.

Summary

While Google is a force to be reckoned with, ad-tech is coming their revenge.

Trade Desk, Yahoo and Amobee are among the first to remove Google Open Bidding from their offerings. Others are likely to follow the trend.

With declining open bids, advertisers may see new, additional inventory opportunities for program advertising.

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