Programmatic advertising has revolutionized the way we buy and sell online ads. One of the essential components of programmatic advertising is a bidder. A bidder is an algorithm that bids on ad inventory on behalf of advertisers in real-time auctions.
A bidder is a software program that participates in real-time bidding (RTB) auctions to purchase ad inventory on behalf of advertisers. Bidders are usually part of demand-side platforms (DSPs) that help advertisers manage their campaigns across multiple ad exchanges and supply-side platforms (SSPs).
When a user visits a website, the website sends information about the user to an SSP, which then sends out a bid request to multiple bidders. The bidders review the information about the user, such as their location, device type, and browsing history, and determine if they want to bid on the ad inventory.
If a bidder decides to bid, it submits its bid to the SSP in real-time. The SSP collects all the bids and selects the highest bidder to display their ad. The entire process takes place in milliseconds.
Bid optimization is a process of adjusting bids to achieve desired campaign goals, such as maximizing return on investment (ROI) or minimizing cost per acquisition (CPA). Bidders use machine learning algorithms to analyze data from previous campaigns and adjust future bids based on performance.
Header bidding is an alternative to traditional RTB auctions where publishers offer their ad inventory to multiple bidders simultaneously before it reaches the SSP. This allows publishers to bypass the SSP's waterfall system and receive bids from all available sources at once.
Using a bidder can help advertisers save time and resources by automating the bidding process. It can also increase efficiency by selecting the most relevant ads for each user and delivering them in real-time.
To get the most out of a bidder, advertisers should focus on data quality, bid optimization, and transparency. It's important to use accurate user data to make informed bidding decisions and continually optimize bids to improve performance. Advertisers should also work with trustworthy partners who provide transparent reporting and clear pricing models.
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