Omnicom Media Group Launches Initiative to Standardize Digital Ad Auctions

Omnicom Media Group (OMG) has announced its efforts to establish standards across several critical areas in the digital ad auction process, according to information obtained by Digiday. The initiative is a step towards enhancing transparency within the $600 billion global media spending framework.

Significantly, Omnicom Media Group has joined forces with the Media Rating Council’s Auction Standards Working Group, with Ben Hovaness, chief media officer for OMD, heading the committee as chairman. This collaborative effort involves approximately 70 companies from various sectors including platforms, marketers, sellers, auctioneers, and industry organizations. The initiative was first conceptualized in May and saw its inaugural meeting in August.

In a notable show of cross-industry cooperation, the effort aims to elucidate and potentially standardize practices in digital ad auctions, addressing issues such as how auction winners are determined and the transparency of pricing mechanisms. Ben Hovaness expressed his satisfaction about the overwhelming industry support, noting that almost 80% of auction transactions occur via walled gardens rather than programmatic firms.

“I was most pleasantly surprised by just the breadth of participation and support from across the industry,” said Hovaness. The next actions include distributing questionnaires to approximately 25 participating auction firms to gather insight into their processes. “The information gathered will guide how we write the ultimate standard, defining industry expectations for auction conduct,” Hovaness added.

Support for this initiative has also come from Katherine Freeley, head of Media Center of Excellence at Boehringer-Ingelheim, who commented, “The more visibility we have into the ad auction process, the more confident we can be in the integrity of digital ads marketplaces and the strength of our buying strategies.”

Furthermore, Jamie Power, senior vice president of addressable sales at Disney Advertising, emphasized the importance of real-time data in media purchasing decisions. She applauded the Working Group’s efforts for more transparency in auction-based media, stating, “We commend and support the efforts of the Working Group in sparking this vital discussion about enhanced insights and transparency in auction-based media.”

Joanna O’Connell, chief intelligence officer at OMG, highlighted that this initiative extends the work done by Omnicom’s Council for Accountable, Social and Environmentally Responsible Advertising (CASA). “This feels right in line with CASA,” remarked O’Connell. “What CASA does is it drives change in the platforms, benefitting everyone involved.”