Open Bidding - how it works and is it really worth it?
Open bidding, formerly known as exchange bidding, is a real-time server-side ad auction process within Google Ad Manager (GAM). This process allows multiple ad exchanges to compete simultaneously with Google Ads and other bids, streamlining ad transactions and potentially driving up revenues.
Powering Efficient Ad Auctions
While header bidding creates competition by initiating simultaneous bid requests, open bidding reduces latency and simplifies the ad auction process by conducting it server-side.
This creates a more efficient operation, reducing the load on the publisher's site without sacrificing potential ad revenue.
Key to both types of biddings is the concept of unified pricing rules (UPR). These rules allow publishers to set a minimum price for their ad inventory across all programmatic demand, ensuring their ad spaces are sold at competitive rates and safeguarding against potential underselling.
The integration of open bidding with Google AdSense can enhance the ad fill rate, ensuring publishers maximise the value from every ad impression. Google AdSense, when used in conjunction with open bidding, offers a broad array of ads and expands potential audience reach, boosting the chances of ad spaces being filled and increasing publisher revenues.
Main Points About Open Bidding You Need to Know
- Simplified process. Open bidding streamlines the ad buying process by creating a unified auction where all advertisers can compete in real-time, reducing operational complexities.
- Higher revenue. By attracting more advertisers into a single auction, open bidding can help publishers maximise their ad revenue.
- Efficiency and speed. Open bidding removes the need for the traditional 'waterfall' bidding system, reducing latency and providing a better user experience.
In conclusion, open bidding is a pivotal feature in the landscape of programmatic advertising. Its successful interplay with header bidding, unified pricing rules, Google AdSense and other tools offers a robust, comprehensive solution to maximise publisher returns on their ad inventory.