As part of their efforts to optimize the supply chain and control Google’s influence, two ad-tech vendors, Yahoo and Amobee, have removed Google Open Bidding from their demand-side platforms.
In February, The Trade Desk announced the launch of OpenPath and did not enable open bidding. This decision emboldened others in the ad tech ecosystem to do the same.
Analysts have suggested a variety of reasons for the change, including the fact that Open Bidding provides redundant ad impressions, charges a 5% fee for its services, and further encroaches on Google’s infrastructure. In a report published on February by the ad-tech consultancy Jounce Media, nearly 13% of bid requests are initiated by Open Bidding, and Google’s buy-side platforms are worth over $25 billion annually.
Complexity and opacity in the ad-tech ecosystem has led companies to invest more resources into optimizing their supply chains and eliminating sources of duplicate demand and circuitous pathways that reduce profits and increase carbon emissions.
During this process of eliminating inefficiencies, Google has gained industry-wide recognition for its dominance in this area, which has attracted U.S. and European antitrust scrutiny. Although Open Bidding is not Google’s primary revenue driver, its rejection may reflect a shift in power.
