Advertisers use the bidding process to determine the cost of each impression. A publisher’s utmost willingness to spend for an auction is a bid. Search engines offer different requests, such as the cost per click or the cost per 1000 impressions. This is the maximum amount you are ready to pay on your ad for a certain period.
Header bidding has an equivalent on the server-side in Exchange Bidding in Dynamic Allocation (EBDA). Here’s additional information regarding Dynamic Allocation’s Exchange Bidding.
1. Dynamic Allocation’s Exchange Bidding
A “last glimpse” at all impressions and the final opportunity to bid was given to the Google Ad exchange before ENDA’s introduction. Even though Google could outbid most ads with a modest margin, many publishers did not appreciate this strategy. When it came time to bid in the auction, several publishers felt that they had an unfair edge. To level the playing field, Google used Exchange Bidding in Dynamic Allocation.
2. Why Use Exchange Bidding?
Publishers prefer exchange bidding because of the following factors:
Publishers don’t need to install any software or make any upgrades to participate in the auction, as the bidding process is done server-side, and the bidding is handled automatically.
Publishers have a better user experience while bidding on open exchanges with less latency.
3. What Is The Exchange Bidding Process?
Once an ad request has been made, the process is officially underway. The Ad Manager server then receives the proposal. Next, the ad manager prepares a unified auction to identify the available space’s highest possible return on investment. Here are some of the steps involved.
- An ad manager chooses a popular product to compete against.
- All partners, including 3rd exchanges, ad exchanges, and networks, are contacted with a single request.
- Yield partners prepare their auctions and send the Ad Manager their most competitive bid.
- Unified auctions are held, and only the best bid is accepted.
- The Ad Manager displays the winner’s name on the publisher’s ad space when the request page returns.
Is Header Bidding Different From Exchange Bidding?
Exchange bidding takes place on the server, whereas header bidding takes place on the client.
Exchange bidding needs just an essential awareness of technical concepts, whereas header bidding necessitates intermediate or expert knowledge.
Benefits: Exchange bidding reduces page latency and simplifies the ad campaign. For more control and transparency, cookies can be used in header bidding.
Costs: Google manages expenses in exchange bidding, whereas each publisher is responsible for costs in header bidding.
As a result, Dynamic Allocation’s Exchange Bidding has wholly automated the bidding process. Every ad publisher has the same playing field to win cost-effective impressions for their clients.