Taboola teams with Jounce Media to verify ad inventory free from MFA Sites

On October 2, 2024, Taboola announced a partnership with Jounce Media to verify that its Taboola Select publisher network is free from Made for Advertising (MFA) properties. This collaboration comes at a time when the digital advertising industry faces growing concerns about the quality and effectiveness of ad placements.

What are Made for Advertising (MFA) Sites?

Made for Advertising sites are web properties primarily designed to generate ad revenue rather than provide valuable content to users. These sites often feature low-quality or aggregated content surrounded by a high volume of advertisements. According to industry data cited in Taboola's announcement, approximately 15 percent of current ad spend is directed towards MFA sites.

Taboola's Network

Taboola, a company known for powering content recommendations across the open web, has spent over 15 years building partnerships with prominent publishers. Its network includes well-known names such as Yahoo, Business Insider, and The Associated Press.

Recently, Taboola launched Taboola Select, a curated selection of highly visible placements on approximately 15 percent of its most premium publishers. This offering aims to provide advertisers with access to brand-safe environments while maintaining performance-driven campaign capabilities.

Partnership details and technology implementation

The partnership with Jounce Media, an industry leader in programmatic supply chain management, will leverage Jounce's MFA-detection technology and data. Taboola plans to integrate this technology alongside its proprietary machine learning models and procedures to ensure the exclusion of MFA publishers from the Taboola Select network.

Chris Kane, President of Jounce Media, stated, "Made For Advertising supply undermines advertiser trust in the open internet and siphons ad spend from reputable publishers." Kane further emphasized the positive impact of Taboola's decision to package its premium supply and utilize Jounce data to create an MFA-free marketplace.

Impact on advertisers and publishers

This partnership aims to address several key concerns in the digital advertising ecosystem:

1. Brand Safety: By excluding MFA sites, advertisers can have greater confidence that their ads will appear alongside quality content.
2. Ad Effectiveness: Placing ads on legitimate publisher sites may lead to improved engagement and conversion rates.
3. Publisher Revenue: Redirecting ad spend away from MFA sites could potentially increase revenue for reputable publishers.
4. Trust in Digital Advertising: Initiatives like this may help rebuild advertiser confidence in programmatic and open web advertising.

Adam Singolda, CEO and Founder of Taboola, commented on the partnership, stating, "Advertisers deserve access to premium, brand safe and effective publishers to run their campaigns. Taboola has been on the forefront of providing this access, through our immense scale with trusted publishers. Adding the expertise and guidance of Jounce is yet another vote of confidence in our ability to connect advertisers with consumers in premium destinations."

Taboola's market position and recent developments

Taboola, which went public in 2021 and trades on the Nasdaq under the ticker TBLA, reports significant reach across the digital ecosystem:

• Nearly 600 million daily active users
• Partnerships with top digital properties worldwide
• Approximately 18,000 advertisers utilizing the platform
• Over 1 million monthly e-commerce transactions driven through recommendations

The company's technology uses artificial intelligence to power content recommendations across websites, devices, and mobile apps, with the goal of driving monetization for publishers and user engagement for advertisers.

Industry context and challenges

The digital advertising industry has faced numerous challenges in recent years, including:

1. Ad Fraud: Sophisticated schemes that generate fake impressions or clicks, costing advertisers billions annually.
2. Viewability Concerns: Ensuring ads are actually seen by human users rather than hidden or quickly scrolled past.
3. Brand Safety: Preventing ads from appearing alongside inappropriate or controversial content.
4. Privacy Regulations: Adapting to stricter data protection laws and the phasing out of third-party cookies.
5. Ad Blocking: Combating the increasing use of software that prevents ads from being displayed.

Initiatives like Taboola's partnership with Jounce Media represent industry efforts to address these challenges and improve the overall health of the digital advertising ecosystem.

Looking Ahead: potential implications

While the partnership between Taboola and Jounce Media is focused on the Taboola Select network, it could have broader implications for the industry:

1. Increased Scrutiny: Other ad networks and exchanges may face pressure to implement similar verification measures.
2. Publisher Strategies: Content creators may need to reevaluate their monetization strategies if MFA tactics become less viable.
3. Ad Pricing: As inventory quality improves, premium ad placements could potentially command higher prices.
4. Measurement Standards: The industry may move towards more standardized definitions and detection methods for MFA sites.
5. Advertiser Education: Brands and agencies may need to become more knowledgeable about supply path optimization and inventory quality.

Key Facts

• Partnership Announced: October 2, 2024
• Taboola's Daily Active Users: Nearly 600 million
• Percentage of Ad Spend on MFA Sites: Approximately 15%
• Taboola Select Coverage: 15% of Taboola's most premium publishers
• Taboola's Monthly E-commerce Transactions: Over 1 million

Summary

• Taboola partners with Jounce Media to verify ad inventory is free from Made for Advertising (MFA) sites
• MFA sites account for approximately 15% of current ad spend, according to industry data
• Partnership aims to enhance trust, brand safety, and effectiveness in digital advertising
• Taboola Select offers advertisers access to premium publisher placements
• Initiative could have broader implications for ad quality standards across the industry