IP match rates disappoint while Prebid and AI transform programmatic

Welcome to this month’s Spotlight, your recap of the biggest stories across adtech and digital marketing.

What we have for you today: The EC mulls GDPR changes, Prebid takes centre stage, and IP matching fails to deliver

Is the EU about to row back on privacy regulation?

There have been concerning reports this month that the European Commission (EC) is looking to loosen GDPR for AI and cookie tracking, as well as watering down elements of its Artificial Intelligence Act and e-Privacy Directive. Packaged as the “Digital Omnibus,” new measures could enable websites to track visitors with cookies by default, forcing consumers to opt out rather than opt in. Enterprises could also be allowed to train AI models on customer data based on “legitimate interest,” rather than requiring consent.

Although we recognise that a simplification of consent management is long overdue, there are clear risks involved in taking this too far. Watering down consumer protections  would be a clear retrograde step, running counter to growing consumer demand for a privacy-centric internet. The EC would also risk ceding its global leadership on privacy and signalling to other jurisdictions that the interests of big tech can trump consumer rights. This would be especially unfortunate given how much the EU has inspired privacy legislation worldwide—India’s recent passage of its own GDPR-style law being just one example.

We hope these reports prove unfounded. Regardless, we believe consumer expectations will ultimately shape the internet of the future, and brands that prioritise privacy will outperform those that do not.

Prebid’s growing role on the open web

Prebid, the open-source header bidding framework, looks set to play an increasingly influential role in the programmatic ecosystem, with the framework being touted as a part of the remedies to the DoJ vs. Google antitrust case.

If Prebid does become more central to how programmatic advertising operates on the open web, this is welcome news. It signals the emergence of a multipolar landscape where advertisers and publishers have access to a broader, more diverse set of tools, rather than being almost solely reliant on Google.

It remains the case however that the spread of Prebid alone will not reduce the dominance of Google. As we have repeatedly stated, Google’s stack needs to be opened to third party solutions in a more rounded way. Doing so would be a shot in the arm to the entire digital advertising ecosystem.

AWS amps up its adtech play with RTB framework

Another sign of greater fragmentation in adtech comes with the introduction of AWS’ RTB Framework, a real-time bidding service designed for ad buyers and sellers.

Our concern is that Amazon, AWS’s parent company, already operates a broad suite of adtech tools, including a DSP, a marketing cloud, and an ad server, and is also making a major push into retail media. With such a deep and expanding footprint across the ecosystem, smaller ad-tech companies may worry that just as Google’s dominance begins to wane, another giant is emerging to take its place.

Not every problem needs AI

According to reports, media agencies are increasingly using generative AI to reduce the workload associated with creating the inclusion lists used to restrict programmatic spending to specific publishers and sites. The aim of inclusion lists is to ensure that campaigns get in front of the right audiences and are not wasted on made-for-advertising sites.

Our view is that this is yet another example of AI being applied to a problem that can be solved far more simply through other means. Privacy-centric identifiers, such as telco-verified IDs, verify audiences at source and give advertisers confidence that their campaigns are reaching the right people. Better still, this approach integrates seamlessly with existing programmatic systems, so no extra steps nor AI add-ons are required.

IP match rates fail to deliver

Advertisers routinely rely on IP matching to connect billions in digital ad spend with real consumers and to measure the end results. It will therefore come as something of a shock to them that IP-to-email matches are thought to be accurate about 16% of the time on average, while IP-to-postal matches are accurate only 13% of the time.

This is yet more evidence that many of the mainstream data signals used by advertisers and publishers are no longer fit for purpose. If open-web publishers are to compete with the walled gardens for advertising spend, they need more accurate identifiers that give them full confidence their budgets are being optimised. Emerging solutions such as telco-verified IDs prove this is entirely achievable. The challenge now is accelerating adoption.

IAB Tech Lab promotes Agentic AI standardisation

IAB Tech Lab, has just released its Agentic RTB Framework (ARTF) v1.0 for public comment. The specification would introduce a standardised approach to interoperability across the programmatic advertising ecosystem, using AI agents to enable near real-time media trading.

Any framework that helps improve standardisation and interoperability in programmatic is good news. However, thinking more broadly about the use of AI agents in programmatic, we would like to see a model focused on transparency and privacy control. It will be essential to look inside the black box and ensure that agents are processing data in a way that accords with privacy laws and consumer expectations.

More from Novatiq

If you’re looking for more insights on digital marketing and adtech, take a look at our latest blog. This month, we’re exploring how AI slop and new types of ad fraud are draining marketing budgets and what can be done to fix it.