If you are yet to use Google Open Bidding, you might be losing out on a lot of ad revenue.
Open Bidding allows you to invite third-party demand partners to compete for your inventory in a single auction with a real-time, server-to-server auction. It was formerly known as Exchange Bidding in Dynamic Allocation (EBDA) and is a feature in Ad Manager that provides reporting, trafficking, and billing.
This article delves into Google Open Bidding, how it works, its advantages and disadvantages, and how it differs from header bidding.
What is Google Open Bidding?
Google Open Bidding in Google Ad Manager (GAM) is an alternative to Header Bidding. It allows you to invite third-party demand partners(or yield partners) to compete for an ad inventory in real-time.
It accommodates many ad exchanges, SSPs, and networks that can bid for an impression simultaneously. The goal was to provide a means to incorporate non-Google demand partners while reducing page latency.
Because Open Bidding allows additional yield partners to compete with Google Ad Exchange(Google AdX), it can help publishers increase their eCPMs and fill rates.
How does Google Open Bidding work?
Open Bidding works via Google Ad Manager in a “server-to-server” connection between publishers and their demand partners. It conducts a unified auction to identify the optimal yield.
To access open bidding, publishers must have their GAM linked to a Google Ad Exchange(Google AdX) account. Third-party demand partners may then compete for your inventory in real-time.
The process takes place in the following order:
1. An ad request is made, and data is sent to Google Ad Manager
When a visitor views an app or a website, an ad request is triggered, which starts the process. A cookie is put on the user’s device that holds user information such as location, age, gender, interests, etc.
This data is sent to GAM via Google Publisher Tag or GMA SDK. It then interprets the data and generates bid requests distributed to demand partners.
2. To identify the optimal yield, Google Ad Manager(GAM) conducts a unified auction.
Google Ad Manager chooses the most relevant line item to compete in the unified auction. The targeted yield partners are then sent a request to return the most competitive bid.
Google Ad Manager organizes and conducts a unified auction, comparing yield partner’s bids, Google AdX bids, and other direct line items through dynamic allocation to guarantee the highest-yielding ad impression for every ad request.
3. The publisher receives a creative
Following the completion of dynamic allocation, Google Ad Manager’s ad server provides the winning asset to the publisher for display. It either receives a creative from the Ad Manager or from the authorized buyer that wins the auction.
Yield Partners in Google Open Bidding
Demand partners (advertisers, DSPs, and ad networks) who support/sign up for Google Open Bidding are yield partners.
A contractual agreement is required for publishers who wish to allow a yield partner to bid on their inventory. However, Google is uninvolved in this relationship. Google merely provides a platform for publishers to run auctions on GAM.
The critical yield partners are ad networks and ad exchanges that have partnered with Google to participate as open bidders. OpenX, Index Exchange, and Rubicon Project are a few such partners.
How do I activate Google Open Bidding?
A publisher must manually allow demand partners in Google Ad Manager to compete for ad impressions. To get prepared with a GAM account and Open Bidding enabled, take the following steps:
Step 1: Activate the Google Open Bidding and add the Company’s name
- Navigate to Admin > Companies.
- If the company you’re looking for is already on the list, you may skip the following two stages.
- Alternatively, go to New Company > Ad Network.
- Enter the company’s name and select an option from the drop-down menu.
- When you find the company’s name, click the ‘Enable for Open Bidding‘ option.
- Select Acknowledge and then Save.
Step 2: Include the Yield Group
In the yield group, describe the inventory available for auction via Open Bidding. It might contain DoubleClick Ad Exchange as well as third-party ad networks. However, before adding a yield group know that publishers and demand partners need to have a contractual relationship and there is no involvement by Google in this contract.
Here’s how to add yield groups:
- Navigate to Yield groups > Delivery.
- Select Create a yield group and give it a suitable name.
- Personalize the yield group with settings such as ad format, inventory type(web, app or both) or ad size
- Define your targeting. By selecting Run of Network, you can target all your inventory for the applicable criteria.
- You may also add another yield partner to the same group by clicking Add Another Yield Partner and selecting Open Bidding as the integration type.
- Finally, save and activate.
You should start receiving bids in a couple of hours following the setup.
Google Open Bidding vs Header Bidding
Google designed open Bidding to give an alternative to Header bidding that decreases ad latency. People began comparing the two once Google labelled Open Bidding as a superior option to Header Bidding. However, the two are quite different:
Google Open Bidding
Platform where auction takes place
Technical Knowledge required
Basic understanding of ad tech and Google Ad Manager.
High end skills including programming languages.
Google AdX, Google AdSense and Direct Demand.
Publisher must source the demand partners
Management of payment
Managed by Google
Managed by Publishers
- Less complicated,
- Better cookie matching,
- No cookie matching,
- Technically complicated,
Lately, there has been a mention of the advantages and disadvantages of Google Open Bidding. Let us discuss it in a little detail!
Advantages of Google Open Bidding
Page Latency and Core Web Vitals
Header bidding takes place in the user’s browser, while the Open Bidding auction takes place on an ad server. This makes it easier for the ad to load on the user’s device. As a result, the page loads faster, resulting in higher Core Web Vitals and a better user experience.
Multiple exchanges, SSPs, and ad networks are involved in unified auctions. This allows additional ad tech partners to compete for a publisher’s inventory. Publishers benefit from more competitive auctions, greater eCPMs, and increased revenue.
Open Bidding makes it easy to set up auctions because GAM handles all of the technical components and simplifies monitoring, reporting, and payment for publishers.
Disadvantages of Google Open Bidding
Transparency and Control
Header bidding triumphs over Open Bidding when it comes to transparency and control. Everything happens ‘on’ publishers’ web pages using header bidding, and publishers can view everything from incoming bids to bid prices and timeout sessions, unlike Open Bidding, which operates on Google’s platform.
The auction for Google Open Bidding is handled on a server, and the information carried by ad requests from website to server is minimal. This prevents Open Bidding from accurately comprehending impressions and displaying correctly targeted advertising.
Open bidding might be challenging at first. However, it can be quite profitable, much like header bidding if you’ve mastered it.
If you are new to Ad Manager, seek advice from professional Google Partners (like AppBroda). Our Adops experts will help you utilize open bidding to its full potential while adding more demand partners to your ad stack.
So, what are you waiting for? Get started with AppBroda today!