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The Growing Role of DSPs in a Post-IDFA World

With the growing adoption of in-app bidding solutions, DSPs have become an increasingly prominent part of app publishers’ growth strategy, a key user acquisition and retargeting channel. Heavily relying on precise targeting, Apple’s iOS 14 IDFA deprecation announcement was especially hard for them and put the industry on a path in search of post-IDFA solutions.

 

Fyber and other programmatic players in the industry have embraced this new reality, further solidifying programmatic as the transparent and quality channel set to dominate. We are already helping DSPs and publishers to prepare, test and be ready to tackle post-IDFA challenges with the first rollout for our Marketplace iOS SDK version 7.6.3. This update includes contextual app targeting parameters, including IDFV support to maximize spend on inventory with no IDFA. While leveraging the programmatic capabilities for the day after IDFA, we believe great opportunities for marketers already exist, and the DSPs are key players in driving this new strategy forward.

 

Why now? Where have the DSPs been?

Just because DSPs don’t develop and distribute their own proprietary SDK, does not mean that they don’t have access to high quality users within the app publisher waterfall. The evolution of the SDK-based ad networks started from a pure direct demand business focused on running user acquisition budgets for their advertisers, to a hybrid platform that monetizes app publishers’ inventory by running direct demand, or by reselling that inventory to DSPs through an Open Real-Time Bidding (OpenRTB) auction. DSPs now have direct access to vast, high quality inventory (especially rewarded video) and, over time, were able to win more impressions at the expense of the ad networks’ own direct demand.

 

The development of DSPs supporting new engaging formats, accessing high quality users and tapping into new advertiser budgets has not been made transparent to app publishers working with ad networks. From an ad monetization perspective, 100% of the revenue is ‘attributed’ to the ad network that had its SDK integrated with the app publisher.

 

There’s nothing preventing ad networks or ad monetization platforms from showing app publishers every demand source that contributes to their revenue. As app publishers gain more experience working in the bidding environment, data and transparency should become a top priority for them.

 

Trust and transparency are key

Our programmatic DNA is what sets us apart as we help our publishers work better with the DSPs by bridging supply and demand. This ensures app developers and mobile marketers understand and trust the system supporting their businesses, and enable data and creative optimization via a transparent channel. You don’t often see DSPs in the waterfall, but Fyber Marketplace exposes the demand source behind the ad revenue, while some ad networks don’t. And this transparency matters. 

Why DSPs are increasing their market share

 

Fewer SDKs

In order to monetize games with ads, app publishers need to integrate ad networks. SSPs like Fyber are the SDK for the SDK-less, therefore empowering this exchange and eliminating the occasional crashes SDKs may cause. DSPs don’t have SDKs, thus enabling seamless access to incremental campaigns.

 

Data access

DSPs use the OpenRTB Protocol industry standard, which defines the way that DSPs can participate in a real-time auction that SSPs hold for each impression. This technology offers an incredibly efficient way to trade ads in real time. In fact, the vast majority of data signals that ad networks get from their SDKs can be transmitted as part of the OpenRTB protocol.

 

True value

DSPs will pay the true market value of each impression, not a fixed CPM. All while accessing new advertiser budgets. You don’t want to miss out on demand and supply opportunities.

 

Transparency

One of the main non-monetary benefits that bidding can provide is transparency. DSPs and SSPs alike have the opportunity to provide reporting and transparency in relation to auction dynamics, creative controls and measurement, across advertiser and app level media.

 

To continue advancing, DSPs need to keep up

With iOS 14 around the corner, now is the time for DSPs to adjust their old ways. Many are already testing contextual targeting parameters and evaluating their campaign performance. The first batch of contextual parameters are live and our partners are using these solutions to test Limited Ad Traffic (LAT), seeing positive results.

 

Fyber is leading the efforts to prepare and standardize the approach to iOS 14 and SKAdNetwork. This rollout is a critical preliminary step to ensure iOS inventory monetization remains strong and stable, as users are expected to begin to upgrade their software. Additional SDK updates are set to come in early September, just in time for Apple’s update. Our industry is creative and has excellent people working as part of this ecosystem. We are optimistic about the development of these parameters and additional solutions – built to enable our entire ecosystem to perform and win in a world without IDFA.

 

Click this link for more about Fyber’s contextual targeting developments for iOS 14.

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