Open Bidding Simplified: A Complete Guide
Open Bidding or Exchange Bidding in Dynamic Allocation (EBDA) is an auction that takes place within the ad server and not the user's browser. In Open Bidding, you (publishers) can invite various demand partners to bid on your impressions in real time. You can use Open Bidding with Google Ad Manager, which offers billing, reporting, and trafficking features. Let's learn more in detail!
- History behind Open Bidding
- Setting up Open Bidding
- How Open Bidding works
- Open Bidding vs. Header Bidding
History behind Open Bidding
In order to offer an effective alternative to Header Bidding, Google established Open Bidding. The objective was to provide a means of integrating demand partners other than Google's while lowering page latency. As Google Open Bidding is server-side and does not run on the user's browser, it results in better core web vitals, faster page loading, and improved user experience.
Also, since multiple demand partners compete with Google's demand for impressions, publishers see an increased fill rate and eCPM.
Setting up Open Bidding
As a publisher, you can access Open Bidding only when you have a Google AdX account linked with Google Ad Manager that is set to 'Default for dynamic allocation'. Find more information about setting up Google Open Bidding.
How Open Bidding works
Ad Manager handles Open Bidding requests through a server-to-server integration between publishers and demand partners. It conducts a unified auction after an ad request is produced, to find the optimum yield. This allows external demand partners to compete in real-time for your inventory.
Below are the steps that take place in Google Open Bidding.
- Device, targeting, and user information is sent to the Ad Manager ad server when an ad request is triggered.
- To identify the optimal yield, Ad Manager conducts a unified auction. It simultaneously completes the following actions as part of the ad selection process:
- Ad Manager chooses the highest trafficked line item to participate in the unified auction.
- Ad Manager directs a bid request to the targeted yield partners that it identifies using yield groups.
- Targeted yield partners conduct their own auctions with their own Open Bidding integration and return their best bid to Ad Manager.
- Ad Manager chooses a winner by running a unified auction, comparing all the bids in dynamic allocation.
- Ad Manager returns a creative or mediation for the publisher to display.
Open Bidding vs. Header Bidding: What to Choose
Advantages of Open Bidding over Header Bidding
- Reduced page latency: Owing to the server-side auctions, Open Bidding offers reduced page latency compared to Header Bidding, where the auction happens on the user's browser.
- Limited technical skills: You can easily set up and access Open Bidding with fewer technical skills. In contrast, Header Bidding requires you to embed a piece of code to the website header. Making changes to the code when adding or removing advertisers is an extra task and requires technical expertise.
- Simplified reporting: Open Bidding delivers simplified reporting, which enables you to find revenue-generating channels and gain transparency about your demand partners.
- Uncomplicated payments: Payments are uncomplicated because Google handles them and pays you on NET 30 basis. Whereas in Header Bidding, you have to manage the payments yourself, which adds more responsibility and increases the chances of errors.
Advantages of Header Bidding over Open Bidding
- Higher eCPMs: Header Bidding uses cookie matching to deliver higher eCPMs. Even though Open Bidding can map users across platforms, it does not have Header Bidding's level of access to rich cookie data. Thus, you can expect lower eCPMs with Open Bidding.
- Transparency: Header Bidding offers advanced transparency about demand partners where they can see the incoming bids and bid prices, providing clarity about how the winning bid is selected. On the other hand, Open Bidding does not give a complete view of the bidding process.
Even though Open and Header Bidding both have pros and cons, both are prevalent technologies trusted by publishers worldwide. Reach out to us for clarity or assistance at firstname.lastname@example.org, we're here to help!