Last week, news in AdExchanger emerged about Index Exchange’s practice of bid caching, a technique by which losing bids on video inventory are held until they can be used on the next ad opportunity. Bid caching inherently takes advantage of buyers, forcing them to bid higher in auctions; although they will often end up buying different inventory than they originally aimed to purchase, as a result.
The practice ultimately benefits the exchange (and the publisher) because the chances of winning auctions dramatically increases at higher CPM rates. Buyers now feel duped, particularly because Index Exchange never revealed this change in auction behavior until last week.
Make no mistake, this bait-and-switch “game” manipulates the system and SpotX adamantly opposes it. Moreover, SpotX does not— and never has — employ bid caching and would only alter auction dynamics in a fully collaborative manner with both buyers and sellers.
Transparency is a key core value at SpotX. We pride ourselves on leading the ad tech industry by maintaining a safe, fully transparent platform (including transparent auction dynamics) for the media industry to do business. We conduct internal audits with trusted third-party organizations such as the Trustworthy Accountability Group (TAG) and were recently granted renewal certifications in all TAG categories including anti-fraud, anti-malware, internet piracy prevention, and greater transparency.
At SpotX, our door is always open. Should you have any questions pertaining to our auction practices, please feel free to reach out to us directly at firstname.lastname@example.org.