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Google is working on a lucrative new ad product but some people who've seen it think it's a 'secret tax' and it 'requires us to lie'

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Michael Wadsworth
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In April, Google announced a new ad product which most people in the advertising industry saw as a move designed to stamp out "header bidding," one of the newest pieces of technology ad tech companies and publishers have been using in an attempt to carve away at DoubleClick's monopoly.Header bidding essentially lets Google's rivals jump to the front of the line in the contest for ad slots, and that largely drives up ad revenues for publishers.Needless to say, Google isn't going to take this lying down.Google's DoubleClick has been running a test program that gives a few ad exchanges which compete with its own ad exchange, AdX, access to Google's "Dynamic Allocation" product.

The product is called EBDA exchange bidding in Dynamic Allocation .But people within the ad tech industry have also been calling EBDA a lot of ruder things, too.We spoke around a dozen ad tech and publishing executives, the majority of whom broadly shared the same opinion: EBDA in its current form has a long way to go before it convinces the ad tech industry it benefits anyone except Google.

So ad tech companies don't want to be seen publicly dismissing the program and running the risk of being thrown off.

Nevertheless, they're all talking about it in private.A Google spokesperson sent Business Insider this statement: "We're continuing to test exchange bidding in Dynamic Allocation taking our publishers' and partners' feedback into account as we refine the product.

We're really happy with the results so far and look forward to adding more exchanges and partners in the coming quarters.

"What on earth is header bidding and what does EBDA have to do with it?For a full header bidding primer, read Beeswax CEO Ari Paparo's explanation hereHere's a bitesize version.Google's DoubleClick has a huge ad tech monopoly.

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Michael Wadsworth
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