"Transaction IDs (TIDs) have been the topic du jour on LinkedIn and Twitter - and for good reason. These OpenRTB identifiers let buyers deduplicate the cluttered bidstream. The entire TID debate has a clear subtitle: "Duplication is waste." However, legitimate auction duplication provides benefits for publishers. And the use of TIDs drives publishers' fears around data leakage and buy-side power aggregation."
"This sparked a productive conversation about the trade-offs between buy-side transparency and sell-side data control. The drama escalated when Prebid (the main technology used by all web publishers to control their ad auction) TIDs designed to protect publisher data and make them less useful for buy-side deduplication."
"Classical auction theory defines a bidding ring as a group of bidders who pre-coordinate, choose a representative and suppress the number of bids that reach the main auction. Imagine a fine art auction with 30 potential buyers. If 25 of those buyers discussed a strategy beforehand and only one of them showed up to the auction, that's a bidding ring."
Transaction IDs (TIDs) are OpenRTB identifiers that let buyers deduplicate crowded bidstreams. Duplication is often characterized as waste, but legitimate auction duplication can benefit publishers. The use of TIDs raises publisher concerns about data leakage and buy-side power aggregation. Prebid modified TID handling to protect publisher data and reduce their usefulness for buy-side deduplication. A distinct market failure exists in the form of bidding rings. Classical auction theory defines bidding rings as coordinated groups that suppress bids. In programmatic markets DSPs run internal meta-auctions, shade and emit a single best bid, aggregating competition and lowering external bid density, muting demand signals and thinning price discovery.
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