AdExchanger recently reported that Index Exchange employs bid caching, the practice whereby an exchange holds on to a losing bid and serves it on the next piece of content a viewer consumes. Given that buyers typically bid more for the first piece of content a user sees, bid caching means they receive different inventory from what they bid on while paying the same price.
This gaming of the system does offer benefits to publishers by improving their yield, but ultimately it benefits the exchange indulging in the practice as it increases the likelihood that they will win multiple auctions. The big loser here is the buyer who is likely overpaying for an impression.
Some may wonder if we at Telaria employ this practice. We want to be unequivocal in our stance on this issue — Telaria does not, in any way, employ any tactics behind the scenes in order to game the system.
We are radically transparent in bid requests and offer full financial deal transparency to publishers and demand partners with every transaction. We believe in 100% transparency between us and the parties that transact on our exchange, and in fact, our platform was recently verified by Ernst & Young as 100% transparent in a SOC-2 audit.
Yesterday it was the fear of hidden fees. Today it’s bid caching. Tomorrow it may be something else, but what will remain constant is our absolute commitment to operate in a transparent, trusting and good faith manner with our many partners. The health of our business, and ultimately our industry, depends on it.
Simply put, we don’t play games. Telaria is the safest, most transparent and most effective platform in which to transact.