Open-Source SDKs for Ad Industry Transparency

Advertisers consistently express dissatisfaction with the opacity surrounding the origin, sale, and evaluation of advertising traffic, identifying it as a significant obstacle to collaborating with different service providers. However, despite advancements in data security and privacy regulations like GDPR and COPPA, substantial improvements in overall ad-marketing transparency remain elusive.

This situation stems, in part, from the inherent intricacy of programmatic and other advertising technologies. The automated handling of billions of ad impressions daily presents a considerable challenge in achieving greater simplicity and clarity. Therefore, the industry’s difficulty isn’t necessarily a lack of commitment to transparency, but rather the practicalities of achieving it.

Concerningly, data indicates that certain industry practices regarding data collection and utilization have contributed to a decline in public confidence in online advertising. This is a long-standing issue, fueled by increasing consumer discontent with how their information is gathered, examined, and leveraged for profit, alongside advertiser concerns about the clarity and validity of the ad clicks they are billed for.

Ongoing initiatives by groups such as the IAB and TAG aim to establish transparency standards, exemplified by efforts like ads.txt. Nevertheless, in the absence of definitive legislation, the onus of responsibility falls on individual businesses.

A relatively straightforward, yet often overlooked, approach that would foster transparency and build trust among all stakeholders – brands, consumers, and ad/marketing companies – would be for the industry to collectively open their Software Development Kits (SDKs) for scrutiny.

Why open-sourcing benefits advertisers, publishers and the ad industry

Open-source software refers to code that is publicly available for anyone to utilize, examine, modify, and enhance.

A typical practice involves reviewing the code and customizing the Software Development Kit’s (SDK) capabilities to suit specific requirements. Security firms and other concerned entities also frequently conduct audits to identify and prevent application fraud. Providing complete transparency into the SDK’s code is the most effective method for instilling confidence in developers and collaborators, demonstrating the absence of concealed functionalities or undesirable elements.

With open-source SDKs, all users have the opportunity to fully understand the underlying mechanisms. Furthermore, the open-source license permits anyone to propose alterations and enhancements to the code itself.

Open source presents certain risks, but the benefits are considerably greater

A primary concern when making an SDK’s code publicly available is the possibility of external parties attempting to identify and utilize weaknesses within it, potentially introducing harmful code or gaining unauthorized access to underlying services and data. Nevertheless, providers should proactively monitor for and address any vulnerabilities that are discovered.

The advantages of open-sourcing include fostering trust and providing greater clarity, which can significantly enhance customer retention and build stronger consumer assurance. In today’s competitive landscape, both advertisers and developers have the freedom to select their partners and negotiate conditions that meet their needs.

From a pragmatic perspective, releasing SDKs as open source can also assist companies in defending themselves against unfounded allegations made by competitors seeking to advance their own offerings. Open standards eliminate the opportunity for unsupported and inaccurate claims designed to generate publicity, as the code itself is available for public scrutiny.

How ad tech is embracing open source

Several businesses within the advertising technology sector, including MoPub, Appodeal, and Adjust, have already chosen to release some or all of their Software Development Kits (SDKs) under open-source licenses.

These organizations have opted for an open-source strategy due to their understanding of the critical need for openness and reliability, particularly when entrusting an algorithm with the security and image of a brand. Nevertheless, the majority of SDKs currently in use are not open source.

Depending solely on innovative companies to independently establish their own standards for transparency will only achieve limited progress for the industry. More decisive measures concerning trust and data openness are now necessary. Just as regulations like GDPR and COPPA compelled businesses to prioritize privacy and enact essential changes, making SDKs open source will propel the ad-marketing field forward, fostering increased trust and broader adoption among clients, rivals, lawmakers, and end-users.

The overarching industry issue of transparency will not be quickly resolved, but encouragingly, progress is being made, with some companies already taking action and others able to do so readily. Enhancing brand safety, reducing advertising fraud, strengthening connections between brands, agencies, and programmatic collaborators, and providing clear information about how consumer data is utilized will all contribute to greater confidence in the advertising ecosystem and subsequent expansion of opportunities.

Therefore, we are urging all companies in the advertising and marketing space to join us in this advancement—for the advantage of consumers, brands, suppliers, and the entire industry—by adopting open-source SDKs as a means to cultivate trust, transparency, and fundamental industry change. This approach will result in consumers who have greater faith in brands and brand advertising, and in turn, brands that place their confidence in us and actively pursue more advanced solutions to expand their operations.