posted at 01:50
Author Name: Jim Edwards
Google Transparency Could Delay Adtech IPOs
Some of those companies are looking at the experience of Rocket Fuel, an ad network that went public in September 2013 and months later was the subject of class action lawsuits, alleging the company's stock fell after it failed to disclose that a significant portion of its ads were being clicked on by fraudulent botnets. Earlier this week, Google disclosed that 56% of the ads appearing on its platforms aren't actually seen by anyone. While that seems bad for Google - why would you want to run ads that don't get seen? - Google is probably betting that by alerting its client base to the fact that it cares about non-functioning ads it will gain those clients' trust in the future. Those "Unviewable" ads are ads that are served on a page but not seen by the user, perhaps because they were low on the page and the reader didn't scroll down that far. Currently advertisers are paying for those ads even though no one sees them. "Non-viewable ads will be worthless by this time next year," Apprendi says. Apprendi is betting that his company - which offers clients complete transparency about how their money is spent, the cost of the inventory bought and the results they get - is well placed to gain clients that want to know whether consumers can actually see the ads they're buying. "Do I want to be a public company while that happens? No," Apprendi says.

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