Are programmatic buyers fully aware of what they are bidding on?
The current complication arises from an influx of first-price auctions in programmatic. Many ad buyers are left in the dark when it comes to the setup of the auctions they’re bidding in. Since buyers can only audit the vendors they work directly with on the demand side, they have no way to verify if other programmatic platforms in the ad supply chain are altering auction structures to covertly eke out more revenue. Translation: A buyer might think they’re buying based on second price but really be in a first-price auction. That can get expensive, since the bid strategies are far different.