Marketing Madness

Online Ad Prices Rising Due to Ads.txt Adoption


Since Google began blocking the purchase of unauthorized inventory by using the relatively new ads.txt anti-fraud strategy on November 8th, the prices of ads has started to rise. In many ways, this makes a lot of sense given the fact that by dramatically reducing the amount of fraud in the ad system, marketers and brands can be assured of a higher quality product. Higher quality products, naturally, will demand a higher price.

The Ads.txt system was brought about by the Interactive Advertising Bureau (IAB) with the intent to stop or reduce counterfeit and/or unauthorized programmatic ad impressions. Today, more than 50% of the total ad inventory that is available on Google’s ad system (DoubleClick) is coming from publishers that use the ads.txt system. This includes 750 of the top 2000 websites on the net.

While the price per ad is likely rising for marketers, the total cost of the investment typically won’t be. Since brands would be paying for fraudulent ads in the past, which are no longer present, the cost per ad that is actually seen by a real person is going to be dropping.

Another thing that is likely driving these prices up, however, is an increased supply in advertisements. Many popular brands were reducing or eliminating their programmatic ad purchases because of the fact that there was so much fraud. With the risk of fraud being properly mitigated, they can begin investing in this effective ad format again.

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Michael Levanduski

Michael Levanduski is the assistant editor of Performance Marketing Insider, and an experienced freelance writer. He writes content for a wide range of sites in virtually every niche, though he specializes in technical writing as well as creating content for the performance and internet marketing industry. Michael was born in Grand Rapids, MI where he still lives with his wife and three children.

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