Ads in ads.txt stands for “authorized digital sellers”, this is an initiative introduced by IAB.tech lab in 2017. Ads.txt’s main purpose is said to increase transparency in digital advertising in order to prevent the buyers from scam.
This initiative aims to provide authentication and control to the advertisers with what they choose to sell which in turn gives the publishers an open platform to publicly declare the companies and associations they have authorized to sell their inventory. This whole process gives out the proper accurate representation of the inventory and decreases the revenue for fraudsters.
Why is it important to adopt ads.txt?
Unauthorized reselling is a major affliction in the online programmatic advertising industry, that could be prevented through ads.txt, how? Through ads.txt buyers can contact publishers directly with which they know which SSPs are authorized to sell their inventory. The publishers can also identify the injected ads by hackers on their website. Advertiser can also set PMP deals by identifying the sellers through it.
Fraudsters spoof sites quite easily, to prevent that, adopting ads.txt would be the wisest decision which will also help you in managing legitimate partnerships.
Is it really necessary for the buyers and sellers?
If publishers were to adopt ads.txt, it will be easier for the buyers to identify the authorization of the digital sellers that the advertisers choose.
Whereas, adopting ads.txt gives sellers or publishers control over their inventory in the market making it harder for the scammers to profit from it.
In conclusion Ads.txt could be a major accomplishment in the online publishing industry, by increasing transparency and halting scammers, spoofers and fraudsters completely.
Publishers and advertisers being able to provide their inventories in confidence without worrying about it being stolen or being scammed is something ads.txt makes sure of and adopting this program will be beneficial for everyone.
Reference : https://iabtechlab.com/ads-txt/