Xandr Tells Publishers It Won’t Cover Unpaid MediaMath Deals, reports AdExchanger

Following MediaMath's bankruptcy, Microsoft's Xandr notified publishers of an inability to honour any outstanding payments related to MediaMath deals transacted between February and June. This decision jeopardises publishers, particularly smaller ones, who risk non-payment for completed services.

The issue highlights a systemic flaw in ad-supported business models. Ad impressions are served immediately post-auction, but before actual payment. This system leads to extended repayment periods and exposes publishers to financial instability.

The MediaMath incident exemplifies how these risks can manifest, demonstrating the precarious nature of generating reliable ad revenue, as potential income can disappear if a partner experiences financial troubles.