Guardian US teams up with Google and MightyHive to uncover programmatic ad fraud on the open exchange and test ads.txt

Guardian US teamed up with Google and MightyHive to initiate a series of tests to investigate issues of programmatic ad fraud on the open exchange and the effectiveness of ads.txt.

The results showed clear evidence of unauthorized exchanges claiming to have sold Guardian US inventory and taking revenue when the buy was made through the open exchange. In contrast, there were no signs of fraud through the DSP only buying ads.txt authorised inventory.

Specifically the results showed:

1. Video was the most affected with 72% of video ad spend going to unauthorized exchanges and SSPs

2. When buying without ads.txt both display and video inventory sales were reported by unauthorized exchanges claiming to sell the guardian.com inventory - the money for these sales did not reach Guardian US

3. Ads.txt buying saw no discrepancies in revenue, and all inventory was bought through Guardian US authorized exchanges

The test was a collaboration with Google and followed two identical buys of Guardian US display and video inventory bought via MightyHive. One set was bought through a DSP only buying ads.txt authorised inventory, and one through a DSP that bought any inventory. The logs of MightyHive and Guardian US were then compared to view any discrepancies in revenue and exchanges claiming sales of Guardian US inventory.

Commenting on the results, Brendan Cleary, VP of programmatic sales and ad operations, Guardian US said:

“It’s unacceptable to see nearly 72% of video spend going to unauthorized exchanges and SSPs - it’s a scenario in which shortchanges both buyers and sellers by misusing ad spend and distorting the perception of ad effectiveness. In order to protect against ad fraud and get the best out of programmatic we recommend that media buyers ideally work directly with trusted publishers, or ensure at the very least ads.txt is a part of their open market strategy.

It is only through working together that we can uncover ad fraud and work towards a more effective and transparent digital ecosystem.”

Lauren Walls, Strategic Partner Lead, Google:

“The ads.txt standard is an essential tool to increase transparency and accountability in the digital advertising ecosystem. It’s great to work with leaders like The Guardian and MightyHive to prove the effectiveness of ads.txt in protecting publishers and marketers from unauthorized inventory.”

Pete Kim, Chief Executive Officer, MightyHive:

“Counterfeit inventory is out there and it’s affecting some of the most expensive inventory available. In partnering with Guardian US and Google, we were able to take a deep dive into the ad supply chain and point to where significant ad fraud is occurring. Marketers should only partner with DSPs that are ads.txt compliant. It is a no-brainer, no-cost solution that helps buyers avoid significant waste.”

Ads.txt (Authorized Digital Sellers) is an initiative that encourages transparency by allowing publishers and distributors to show the companies they authorize to sell their digital inventory. The Guardian was one of the first publishers to sign up to ads.txt in 2017.

Ends

For more information contact:

US - press.office@theguardian.com

UK - media.enquiries@theguardian.com

Notes to editors

About Guardian News & Media

Guardian News & Media (GNM) publishes theguardian.com, one of the world’s leading English-language newspaper websites. Traffic from outside of the UK now represents around two-thirds of the Guardian’s total digital audience. In the UK, GNM publishes the Guardian newspaper six days a week, first published in 1821, and the world’s oldest Sunday newspaper, The Observer. The Observer is renowned for agenda-setting journalism including, most recently, its series of global exclusives on Cambridge Analytica and Facebook.

About MightyHive

MightyHive is a Programmatic and Analytics Solutions Partner combining the capabilities of a consultancy and the media knowledge of an agency with deep expertise in cloud and leading ad tech platforms. Serving enterprise customers and agencies alike, MightyHive services include in-housing consulting, full-service campaign management, and platform implementation, all under one roof and with complete transparency. The company is headquartered in San Francisco with offices in New York, London, Singapore and Sydney.