1. What is Open Bidding?
Open Bidding, also known as exchange bidding, is a feature within Google Ad Manager that allows publishers to leverage a unified auction system to access demand from various ad networks, exchanges, and demand-side platforms (DSPs). It simplifies the monetization process by replacing the traditional waterfall model with a real-time bidding environment. Open Bidding enables publishers to achieve maximum revenue by increasing competition among multiple demand sources simultaneously.2. How Does Open Bidding Work?
Open Bidding operates on a server-to-server connection, where Google Ad Manager communicates directly with participating demand partners. Let's dive into the key steps involved in the Open Bidding process:- Ad Request: When a user visits a publisher's website or app, an ad request is generated and sent to Google Ad Manager.
- Dynamic Allocation: Ad Manager determines the available ad inventory and initiates the dynamic allocation process.
- Bid Requests: Ad Manager sends bid requests containing information about the ad unit, user demographics (if permitted), and targeting parameters to the participating demand partners.
- Bid Responses: Demand partners receive the bid requests, evaluate the available inventory, and submit their bid responses, including the bid price and other relevant information.
- Unified Auction: Ad Manager conducts a unified auction, comparing the bid responses from all demand partners and selecting the highest-paying bid.
- Ad Serving: Once the winning bid is determined, Ad Manager serves the corresponding ad creative from the winning demand partner.
3. How to Use Open Bidding?
To take advantage of Open Bidding, publishers need to follow a few essential steps:Enable Open Bidding: Publishers must enable Open Bidding within their Google Ad Manager account and configure the necessary settings.
Integrate Demand Partners: Publishers can establish partnerships with various demand partners, including ad networks, exchanges, and DSPs. These partners need to be integrated into the Open Bidding setup within Ad Manager.
Set Floor Prices: Publishers can set floor prices to ensure a minimum bid threshold for participating demand partners. Floor prices help maintain control over the quality of ads and prevent underselling.
Monitor and Optimize: Publishers should regularly monitor Open Bidding performance, analyze key metrics, and optimize floor prices and demand partner configurations to maximize revenue.
4. Which Publisher Should Use Open Bidding?
Open Bidding can be beneficial for different publishers if you are:Large Publishers: Publishers with significant traffic volumes can benefit from Open Bidding by increasing competition among demand partners and maximizing their ad revenue potential.
Publishers with Diverse Inventory: Open Bidding works well for publishers with diverse inventory across multiple platforms, such as websites, mobile apps, and video content.
Publishers Seeking Simplicity: Open Bidding simplifies the ad monetization process by reducing the complexity of managing multiple ad networks and exchanges. It streamlines operations, freeing up time for publishers to focus on other aspects of their business.
