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Auction rules

What do auction transparency standards require, and what can buyers ask?

Part of Supply path transparency

The short answer

The MRC's Digital Advertising Auction Transparency Standards, issued as final on January 29, 2026, set disclosure and reporting rules for companies that run ad auctions. They cover auction oversight, required OpenRTB fields, how bids become prices, floors, winner selection, reporting and advance notice of rule changes. Auctioneers can be audited against them through voluntary MRC accreditation.

Key takeaways

  • The MRC issued final Digital Advertising Auction Transparency Standards on January 29, 2026, after a 30 day public comment period in September 2025.
  • The standards supplement protocols such as OpenRTB rather than replacing them, and do not prescribe how an auction must be designed.
  • For OpenRTB auctions they require complete SupplyChain objects and, contingent on multi-bid adoption, transaction and placement IDs.
  • Closed loop auctioneers must disclose fees, floors, winner selection variables and rule changes, with next day reporting where feasible.
  • Any company that evaluates bids, selects winners and sets prices counts as an ad auctioneer, even in an intermediate auction.

What is the MRC auction transparency standard?

Definition

Digital Advertising Auction Transparency Standards
A Media Rating Council document of auditable requirements, best practices and guidance for how ad auctioneers disclose their auction rules and report auction outcomes to the advertisers and sellers taking part.

The Media Rating Council announced the final version on January 29, 2026 (opens in a new tab), covering disclosure and reporting for digital ad auctions across display, text, video and audio formats in digital, search, social, retail media, streaming CTV and addressable TV. The MRC's standards listing (opens in a new tab) shows it as issued in January 2026. The project was sponsored by the 4A's, the ANA, the WFA and IAB Tech Lab, and the draft had a 30 day public comment period in September 2025.

The standard itself (opens in a new tab) explains the problem it addresses. Bid strategies are built on the understood rules of an auction, and "if advertisers believe they are bidding into one sort of auction, but are in fact bidding into another sort altogether, the auction stops working well."

What auction practices does the standard address?

The document has three layers: general requirements for all ad auctioneers, specific requirements for auctions that use OpenRTB, and requirements for closed loop auctions, where one platform hosts the whole auction. Reporting, disclosure and auditing guidance then apply to all of them. The table summarizes the parts a buyer meets first.

Main requirements in the MRC Digital Advertising Auction Transparency Standards (January 2026), by scope
AreaWhat the standard asksApplies to
Auction oversightFormal responsibility for auction integrity, with a designated contact for auction participantsAll ad auctioneers
Participant, creative and supply qualificationDocumented policies made known to participants, with defined processes for violationsAll ad auctioneers
Supply chain fieldsSupplyChain and node objects, including the RequestId, used to their fullest extent and completeOpenRTB auctioneers
Transaction ID and global placement IDMinimum requirements, contingent on DSP adoption of multi-bidOpenRTB auctioneers
Loss codesPassed from seller to buyer for all transactions and reported by the buy side platformOpenRTB auctioneers
Fees and discountsApplied consistently and disclosed; fees encouraged before the auction, discounts afterClosed loop auctioneers
Reserve pricesDisclosed, reported before and after the auction, and the same floor for all buyers at onceClosed loop auctioneers
Winner determinationVariables and their relative weighting made known and reportedClosed loop auctioneers
ReportingMachine readable results, line item detail where feasible, next day or 24 to 48 hour availabilityAll ad auctioneers
Change disclosureMaterial changes communicated in advance, with version histories and impact assessmentsAll ad auctioneers

Some items name DSPs directly. To get value from SupplyChain reporting, the standard says DSPs are required to validate seller IDs in ads.txt against sellers.json, ensure the chain ends at the owner of the inventory, and report the average number of nodes and any mis or undeclared chains to buyers. It also requires DSP support for ads.txt 1.1.

How does the standard treat OpenRTB and closed loop auctions differently?

The split follows where money goes. The standard says "The vast majority of auction-based media spend is now bought and sold through 'closed-loop' auctions" across search, social and retail, where participants may have limited information about how auctions run, while "a significant but smaller portion" happens in programmatic auctions built on OpenRTB. OpenRTB already carries auction data between DSPs and SSPs, so that section names the fields to send and report; closed loop platforms get disclosures spelled out instead.

Closed loop requirements go furthest on scoring. Auctioneers must disclose how ad relevance scores are built and report the scores, and must explain how relevance interacts with bid conversion so participants understand how far it changes the value of their bids. For auction systems that use AI and machine learning, the standard says complexity makes transparency "more important, not less," and asks for high level disclosure of rules and variables, such as a list of the top features behind a placement and price. It adds that these disclosures are "tied to a specific point in time" and do not freeze the models.

A third case sits between the two. Unified seller platforms, acting as both SSP and publisher ad server, should still report to buyers despite contract limits; the standard says such a platform can be compliant if it supports the required disclosures, "even if certain publisher customers ultimately decide not to provide said disclosures to advertisers."

What can buyers ask partners about auction logic?

The standard is written for auctioneers, but its requirements double as questions a buyer can put to a DSP, an SSP or a platform, and a partner that claims compliance should answer them in writing.

Auction logic questions drawn from the MRC standard

  • Who is the designated contact for auction integrity questions?
  • Which auction type applies to this inventory, and how is a winning bid converted to the price we pay?
  • Which fees or discounts are applied to our bids, and are fees taken before or after the auction?
  • How are reserve prices set, and does the same floor apply to all buyers at the same moment?
  • Besides price, which factors decide the winner, and how are they weighted?
  • Do your bid requests carry a complete SupplyChain object, a transaction ID and a global placement ID?
  • Do we receive loss codes for bids that lost, and in what report?
  • How far in advance are material auction changes announced, and where is the version history kept?

Protocol answers can be checked. In OpenRTB 2.6 (opens in a new tab), the at field states the auction type, where "1 = First Price, 2 = Second Price Plus" and exchange specific types use values of 500 and above. A buyer can compare a partner's answer with its bid requests. The first price auction guide covers how each pricing rule works.

How does auction transparency relate to supply path optimization?

Supply path optimization asks who sold an impression and through how many hands, using ads.txt, sellers.json and the SupplyChain object. The sellers.json specification (opens in a new tab) says its aim is to let buyers "discover who the entities are that are either direct sellers of or intermediaries in the selling of digital advertising." Auction transparency asks what happened inside each auction on that path: the floor, the fees, the scoring and why a bid won or lost.

Two kinds of transparency a buyer needs
Two kinds of transparency a buyer needsSupply path files show who sold; auction disclosures show how the sale cleared. Rules known, path unclear: Clear pricing, but resellers unnamed. Path and rules known: The buyer can judge price and route. Neither known: Price and route both unverifiable. Path known, rules unclear: Sellers confirmed, pricing opaqueRules known, path unclearClear pricing, but resellers unnamedPath and rules knownThe buyer can judge price and routeNeither knownPrice and route both unverifiablePath known, rules unclearSellers confirmed, pricing opaquePath known (who sold)Rules known (how it cleared)
Two kinds of transparency a buyer needsSupply path files show who sold; auction disclosures show how the sale cleared. Rules known, path unclear: Clear pricing, but resellers unnamed. Path and rules known: The buyer can judge price and route. Neither known: Price and route both unverifiable. Path known, rules unclear: Sellers confirmed, pricing opaqueRules known,path unclearClear pricing,but resellersunnamedPath and rulesknownThe buyer canjudge price androuteNeither knownPrice and routeboth unverifiablePath known,rules unclearSellersconfirmed,pricing opaquePath known (who sold)Rules known (how it cleared)
Supply path files show who sold; auction disclosures show how the sale cleared.

The two meet in the standard's OpenRTB section, which requires complete SupplyChain objects and DSP reporting on chain length. IAB Tech Lab's Programmatic Auction Definitions (opens in a new tab) add why both matter: one request can pass through several selling platforms, each running its own auction before bids return. Fewer routes, as the SSP consolidation guide describes, means fewer rule sets to ask about.

Who can be audited against the standard?

The scope is set by the glossary. An Ad Auctioneer is "Any company that conducts an ad auction," and the MRC adds that this means a company whose system "evaluates bids, selects winner(s), and sets a price or prices (even if it is not the 'final' auction in a multi-stage auction process)." An SSP running an intermediate auction inside a header bidding setup is in scope, not only the final ad server.

Section 6 of the standard encourages third party audits for all auction systems, "particularly those not utilizing industry standard communication protocols such as OpenRTB." In the United States it recommends certification "at minimum annually by voluntarily submitting to independent audit." Outside the United States, the MRC encourages auctioneers to be audited for compliance annually by independent auditors. The MRC's digital platforms status chart (opens in a new tab), updated July 9, 2026, carries a column for auctions alongside viewability, invalid traffic and brand safety, so buyers can read each large platform's status there.

What does an auction transparency review look like on a real plan?

Fictional example

A portrait studio chain sends auction questions before a deal in New Brunswick

An agency in Moncton plans a holiday campaign for an unnamed chain of family portrait photography studios in Moncton, Saint John and Fredericton. The plan covers English and French local news, parenting and community sites, through a CAD private marketplace deal and a small open auction line.

Before signing, the planner sends the checklist to the SSP hosting the deal and to the DSP. The SSP confirms the deal price is fixed, says the open auction line runs first price, and sends its change notice page. The DSP confirms it reports chain length and loss codes, but says loss codes for one exchange arrive only in a weekly file.

The planner records each answer in the deal sheet, notes the weekly loss code file as a gap, and asks both partners whether they intend to seek MRC accreditation against the standard. The answers change what the agency can verify after the flight, not which sites are on the list.

How does PlacementGraph keep site choice separate from auction terms?

Frequently asked questions

Does the standard require platforms to reveal their algorithms?

No. For closed loop auctions it says disclosures of precise proprietary mechanisms or algorithm details are not required. It does require disclosure of the auction type, how winning bids become clearing prices, and the variables and relative weights that affect winner determination, plus high level descriptions of AI driven systems.

Does the standard cover private marketplace deals?

Partly. The MRC notes that certain private auctions use OpenRTB but have pre-negotiated rules outside simple pricing, and that those distinct considerations are not explicitly covered. It also says that in an OpenRTB context, auctions employing reserve prices should be managed through a deal ID structure.

How quickly must auction results be reported?

The standard generally requires results to be available on a next day or 24 to 48 hour basis, in at least a machine readable format, with line item detail where feasible. Other windows are allowed with support. Sampling and campaign summaries are allowed if the sampling is disclosed and representative.

Does the standard apply to auctions in Canada?

It is written by a US body, but its scope is not limited to the United States. Section 6.3 encourages non US auctioneers to adopt its practices and to be audited for compliance annually by independent auditors, while noting certification regimes vary by country. Canadian buyers can ask partners the same questions about Canadian inventory.

Sources

  1. MRC Digital Advertising Auction Transparency Standards (final, January 2026) (opens in a new tab)Media Rating Council
  2. Standards and guidelines (opens in a new tab)Media Rating Council
  3. Digital platforms accreditation status (updated July 9, 2026) (opens in a new tab)Media Rating Council
  4. OpenRTB 2.6 specification (opens in a new tab)IAB Tech Lab
  5. Programmatic Auction Definitions (opens in a new tab)IAB Tech Lab
  6. sellers.json specification (opens in a new tab)IAB Tech Lab

Researched and written by PlacementGraph Research. Read how we research, source and update these pages. Corrections: diana@placementgraph.com.

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