Q2 2018ADS.TXT TRENDS REPORT

ADS.TXT TRENDS REPORT Q2 2018 2

EXECUTIVE SUMMARY

The IAB-led ads.txt initiative launched one year ago to bring transparency into the programmatic

advertising ecosystem of sellers and domains.

Publishers have rapidly adopted ads.txt since its inception. Pixalate began tracking implementation in

September 2017; since then, adoption has increased at an astronomical rate (over 13,737%).

Marketers have begun buying inventory from sites that have ads.txt implemented to ensure a transparent

transaction. Google recently announced the ability for marketers to only buy ads.txt-authorized display

and video inventory.

Pixalate fully supports the ads.txt initiative, and our Q2 2018 report updates the marketplace on the latest

trends.

ADS.TXT TRENDS REPORT Q2 2018 3

KEY TAKEAWAYS

Ads.txt adoption increased 5.4x over the first half of 2018, from about 90,000

domains to about 500,000.

However, rapid growth slowed in Q2. We expect modest growth moving forward.

75% of the top programmatic sites now have ads.txt, up from 66% in Q1 2018.

The number of top sites with ads.txt began to level off in Q2. Adoption may be

reaching its plateau.

Sites with ads.txt had an IVT rate of 13.1% in Q2 2018, compared to 14.5% on sites

without ads.txt.

This is a difference of 10%.

Google is the most common ‘Direct’ partner, and AppNexus is the most common ‘Reseller’ on ads.txt files.

Google is on the most ads.txt files, but other companies are gaining. This is a

healthy sign for the industry.

SITES WITH ADS.TXT: 13.1% IVT

SITES WITHOUT ADS.TXT: 14.5% IVT

THIS IS A DIFFERENCE OF 10%

ADS.TXT TRENDS REPORT Q2 2018

RELATIONSHIP BETWEEN ADS.TXT AND AD FRAUDQ2 2018

5

A 10% DIFFERENCE IN IVT

● Sites with ads.txt had a

13.1% IVT rate in Q2

2018, while sites

without ads.txt had a

14.5% IVT rate.

○ This is a 10%

difference

● The difference was

more pronounced in

June, (14.5% vs 17.1%).

ADS.TXT ADOPTIONINCREASED 5.4X

IN 2018

ADS.TXT TRENDS REPORT Q2 2018

TOTAL NUMBER OF SITES WITH ADS.TXTH1 2018

7

A 5.4x INCREASE

● Ads.txt adoption

increased over 5.4x in

2018.

○ From about

90,000 sites to

about 500,000

● Adoption increased 42%

in Q2.

5.4x growthin 2018

75% OF THE TOPPROGRAMMATIC SITES

HAVE ADS.TXT

ADS.TXT TRENDS REPORT Q2 2018

% OF TOP 1000 PROGRAMMATIC SITES WITH ADS.TXTQ2 2018

9

HOVERING AT 75%

● Among the top 1,000 sites

in terms of programmatic

ad volume, as measured

by Pixalate, 75% have

ads.txt

● This represents a small

increase from the start of

Q2 2018, when 73% of

top publishers had ads.txt

ADS.TXT TRENDS REPORT Q2 2018

% OF TOP 5000 PROGRAMMATIC SITES WITH ADS.TXTQ2 2018

10

BREAKING THE 70% BARRIER

● Of the top 5,000 sites in

terms of programmatic ad

volume, as measured by

Pixalate, 73% had ads.txt

implemented by the end

of Q2 2018

● The 70% barrier was first

broken the week of April

9; since then, adoption

rates have neared 75%.

40% OF THEALEXA 1000

NOW HAS ADS.TXT

ADS.TXT TRENDS REPORT Q2 2018

% OF ALEXA TOP 1000 SITES WITH ADS.TXTQ2 2018

12

THE 40% MILESTONE

● 40% of sites in the Alexa

1,000 had ads.txt

implemented by the end

of Q2 2018

● Adoption steadily

increased throughout the

quarter, rising from just

over one-third (35%) up to

40%

ADS.TXT TRENDS REPORT Q2 2018

% OF ALEXA TOP 5000 SITES WITH ADS.TXTQ2 2018

13

OVER ONE-THIRD NOW HAVE ADS.TXT

● Over one-third (35%) of

sites in the Alexa 5,000

had ads.txt at the end of

Q2 2018

● Adoption has increased

75% since the start of

2018; on January 1, 20%

of Alexa 5,000 sites had

ads.txt

10 COMPANIES HAVE 50%+ COVERAGE RATE

ON TOP DOMAINS

ADS.TXT TRENDS REPORT Q2 2018

EXCHANGES LISTED ON MOST ADS.TXT FILESAS OF JUNE 30, 2018; AMONG TOP 10K PROGRAMMATIC SITES

15

GOOGLE LEADS, OTHERS GAINING

● Of the top 10,000 programmatic

sites, Google is listed on 6,808

ads.txt files, representing an

increase of 492 compared to Q1

● AppNexus (+525), OpenX (+570),

Rubicon Project (+910), Index

Exchange (+545), PubMatic (+668),

SpotX (+613), One by AOL: Display

(+502), and Sovrn (+507) all gained

ground on Google in Q2

ADS.TXT TRENDS REPORT Q2 2018

COVERAGE RATE AMONG TOP 10K PROGRAMMATIC SITESAS OF JUNE 30, 2018

16

10 COMPANIES AT 50%+

● 10 companies are on at least

50% of ads.txt files among the

top 10,000 programmatic

domains; this is an increase

from 7 in Q1

● Four companies now have

60%+ coverage rate, up from

just one (Google) in Q1

GOOGLE REMAINS THEMOST COMMON ‘DIRECT’

PARTNER

ADS.TXT TRENDS REPORT Q2 2018

EXCHANGES LISTED AS ‘DIRECT’ PARTNER ON TOP SITESAS OF JUNE 30, 2018

18

GOOGLE LEADS THE WAY

● Google is a ‘Direct’

partner with 6,377 of the

top programmatic sites —

nearly 2,000 more than

any other company

● Rubicon Project became

No. 3 in terms of ‘Direct’

listings among top

publishers, up from No. 5

in Q1

ADS.TXT TRENDS REPORT Q2 2018

EXCHANGES LISTED AS ‘RESELLER’ ON TOP SITESAS OF JUNE 30, 2018

19

APPNEXUS TOP ‘RESELLER’

● AppNexus appeared as a

‘Reseller’ 6,064 times on

the top programmatic

sites; it was also the No. 1

‘Reseller’ in Q1

● Google was the No. 3

‘Reseller’ on ads.txt files

in Q1 (with 5,153 listings),

and it became the No. 2

’Reseller’ in Q2 (5,693

listings)

ADS.TXT TRENDS REPORT Q2 2018

WHAT IS ADS.TXT?

The IAB Tech Lab’s ads.txt initiative aims to increase

transparency in the inventory supply chain by helping buyers

identify “Authorized Digital Sellers” for participating

publishers. Specifically, ads.txt combats “counterfeit

inventory,” defined by the IAB as “a unit of inventory sourced

from a domain, app or video that is intentionally mislabeled

and offered for sale a different domain, app or video.”

WHAT IS A ‘DIRECT’ SELLER AND A ‘RESELLER’?

“Direct” means that the SSP or exchange has a direct

business relationship with the publisher to sell the publisher’s

inventory. “Reseller” means the publisher has authorized

another company to resell inventory on the publisher’s behalf.

IS THIS DATA INCLUDED IN THE SELLER TRUST INDEXES?

Yes. Our ads.txt data is incorporated into the Pixalate Seller

Trust Indexes. Each seller is given an “Ads.txt Score.”

DOES ADS.TXT WORK FOR MOBILE APPS?

As of the end of Q2 2018, ads.txt only supports domains (e.g.

desktop and mobile web). A version of ads.txt for apps is

being developed by the IAB, and Pixalate is actively engaged

in the process. The latest draft can be found here.

ARE ALL SITES WITH ADS.TXT TRUSTWORTHY?

Not necessarily. Any publisher can add an ads.txt file to their

site. Just because they have an ads.txt file does not mean

they are a trustworthy publisher. Ads.txt does, however, give

buyers confidence that they are buying legitimate publisher

inventory (rather than “counterfeit inventory”).

DOES ADS.TXT REMOVE ALL AD FRAUD?

No. Proper use of ads.txt combats domain spoofing, which is

just one type of invalid traffic; Pixalate tracks 38 unique types.

However, ads.txt also helps reduce arbitrage, which may not

be reflected in IVT numbers.

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FAQs

ADS.TXT TRENDS REPORT Q2 2018

The research and insights contained within this report

represent Pixalate’s data and opinions as it pertains to the

information Pixalate believes will be most relevant to the

digital advertising industry’s battle against ad fraud.

The data has not been audited or reviewed by a third party,

but the research and insights are grounded in Pixalate’s

proprietary technology and analytics, which Pixalate is

continuously evaluating and updating.

Pixalate’s data science and analyst team analyzed over 7.5

million domains utilizing proprietary analytics tools to compile

this research. The research contained herein represents data

collected by Pixalate from January 1, 2018 through June 30,

2018. Pixalate measured millions of domains each week to

identify sites that have ads.txt files implemented. The data in

this report is reflective of root domains only; Pixalate has

removed duplicates occurring from subdomain ads.txt files.

“Alexa Top 1000” and “Alexa Top 5000” sites were identified

using Alexa.com’s rankings. The top 1000/5000/10000 sites

in terms of programmatic ad volume (i.e. “Pixalate Top 5000”)

were identified using Pixalate’s proprietary ranking of volume

among domains which support programmatic advertising. The

ranking data is reflective of the marketplace as of the date of

each weekly update.

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METHODOLOGY & DISCLAIMER

METHODOLOGY DISCLAIMER

ABOUT PIXALATEPixalate is a cross-channel fraud intelligence company that

works with brands and platforms to prevent invalid traffic and

improve ad inventory quality.

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