87% of Media Professionals Are Using Deal IDs for Their Private Programmatic Trading

Today, nearly nine in every ten (87%) media professionals say they are using deal ID-based trades, according to a recent study by ExchangeWire, in association with BidSwitch.

Increased adoption is expected, too. Of those already trading using deal IDs, almost three quarters (73%) will incorporate more deal IDs into their programmatic trading over the next year. At the same time, this group plans to decrease the volume of open exchange trading they partake in.

Deal ID-based trading uses a system generated number, assigned by a publisher or supply-side platform (SSP), which can then be used by buyers to target pre-specified inventory across private programmatic trades.

The US is ahead of APAC and EMEA for deal ID usage. Over a quarter (26%) of US respondents report using deal ID-based trading for more than 60% of their programmatic ad trades. This compares to 20% in APAC and 15% in EMEA.

The superior brand safety offered by deal IDs, compared with open exchanges, is the main reason for this trading method’s popularity. Its main benefits over open exchanges include:

– Improved brand safety
– Better access to high quality inventory
– Better ROI
– Increased viewability

However, driving uptake among buyers and sellers not currently using deal ID is a challenge, with only 35% of this group saying they will incorporate this method of trading in the next 12 months.

Changes need to be made when it comes to the setup of deal IDs. At present, almost half (46%) of respondents use between 21 and 40 technology partners for deal ID-based trades.

Simon Harris, head of programmatic activation, Dentsu Aegis Network, who participated in the research, says that this number of technology partners “seems incredibly high and I would imagine creates significant operational overheads which preclude the agency from focusing on what is important, optimising towards client results. My advice to others struggling with significant levels of complexity would be to rationalise on this so you can focus on deeper relationships with publishers.”

If we are to see an uptake in the use of deal ID-based trades, there also needs to be a focus on education. More than half (53%) of respondents noted education as a key factor in making transacting deal IDs easier, while 45% said a lack of understanding of how deal ID-based trading works, prevents them from using this method of programmatic trading.

BidSwitch is focused on continually pushing the boundaries on what programmatic advertising can do. Engineered by IPONWEB, BidSwitch was created to help programmatic technology companies meet the challenges and redundancies produced by the rapidly expanding global real-time ecosystem. As a company, BidSwitch is completely neutral and never takes a position on media. We are focused on solving the underlying technical complexities and inefficiencies that hamper platform interconnectivity and trading at the infrastructure level.

Today, BidSwitch facilitates more than 350 supply and demand technology partners globally to connect and trade media across the display, mobile, native, video, TV, DOOH and VR ecosystems — all via a single standardised integration. By integrating with BidSwitch, partners can instantly access hundreds of platforms through normalised protocols. The unique myBidSwitch UI includes features that make maintaining, optimizing and customizing relationships between supply and demand fast and easy.

ExchangeWire tracks global data-driven and programmatic advertising, media buying trends, and the ad tech and mar tech sectors. Delving deep into the business of automated media trading and the technology that underpins it across multi-channels (online display, video, mobile and social), the site aims to keep readers up to data on all the latest news and developments.

ExchangeWire provides opinion and analysis on the following sector companies: specialist media buyers, ad traders, ad networks, media agencies, publishers, data exchanges, ad exchanges and specialist ad tech providers in the video, mobile and online display markets.

A full copy of the report can be downloaded here: https://www.exchangewire.com/demystifying-deal-id-the-future-of-programmatic-trading/.