This piece originally appeared on AdExchanger.
Pubs and brands have complained about programmatic inventory on open exchanges for years, but a renewed focus on inventory quality is gaining traction.
AppNexus has long positioned itself as the platform for ad networks, but it reversed its policy in recent weeks by removing ad networks that don’t provide direct publisher or seller relationships.
Shortly after, Facebook’s LiveRail banished some ad networksbecause “LiveRail is shifting its business focus toward quality, direct-publisher relationships.”
Brands and publishers are increasingly bringing effective first-party data into their digital buys, and they want certain levels of performance and reliability on the open exchange.
“The true buyers and sellers are demanding a flight to quality,” said Sam Cox, MediaMath VP of global media partnerships. “For buyers, every remove means there’s more risk, and more margin disappears. You cut out all that noise, and it increases yield without affecting advertiser price.”
Of course, when Facebook and AppNexus cut out ad networks, it creates an immediate reduction of inventory and revenue. But it’s a hit they’re willing to take in order to ensure long-term growth.
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