Are you involved in the world of digital advertising? If so, you may have heard the term "bid request" thrown around. But what exactly is a bid request, and why is it important to understand? In this post, we'll cover everything you need to know about bid requests, including the top six questions people have about them.
At its most basic level, a bid request is a request for an advertiser to bid on available ad inventory. This request is sent from a supply-side platform (SSP) to an ad exchange, which then forwards it to potential bidders. The bid request includes important details about the inventory available for purchase, including the type of ad, its size and placement, and the audience it's likely to reach.
Once a bid request has been sent out by an SSP, potential bidders have the opportunity to submit a bid response. This response includes information about how much the bidder is willing to pay for the ad placement (the "bid"), as well as any additional information that may make their bid more attractive. The ad exchange then evaluates all of the bids submitted and selects the winner, who is given the opportunity to place their ad.
Bid requests are an important part of the digital advertising ecosystem because they ensure that advertisers are only bidding on inventory that meets their specific criteria. For example, if an advertiser only wants to target audiences in certain geographic regions or on specific devices, they can use bid requests to ensure that they're only bidding on inventory that meets those criteria.
Because advertisers are only bidding on inventory that meets their specific requirements, this can impact overall inventory availability. In some cases, advertisers may be willing to pay more for certain types of inventory (such as high-impact ad placements) than others, which can make those placements more scarce.
Several factors can impact the number and type of bid requests that are sent out, including advertiser demand, available inventory, and changes in the overall advertising landscape. For example, if a new type of ad format becomes popular, this may lead to an increase in bid requests for that particular format.
To increase their chances of winning a bid, advertisers can take several steps to optimize their bid responses. This may include providing additional information about their target audience or offering creative that stands out from the competition. It's also important to continually review and refine bidding strategies based on past performance.
Understanding bid requests is an essential part of navigating the digital advertising world. By knowing how they work and what factors impact them, advertisers can make informed decisions about where to allocate their budgets and how to optimize their bidding strategies.
