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Can someone help unpack this? So from first read it sounds like google is using bid stream data from their ad server, to inform suggested bids that would clear
by dillondoyle 6y ago
Can someone help unpack this?
So from first read it sounds like google is using bid stream data from their ad server, to inform suggested bids that would clear/win for customers buying this inventory through dv360/admob/adwords/whatever they brand buy side as now? Which sounds like a win/win for google, higher pub revenue, higher margin through buyers.
But other DSPs also have a large amount of bid data, even without clearing price on a loss notification (do any exchanges disclose?) they have so much scale that they can accurately price? If you're consistently losing auctions you know the clearing price is higher. But then I guess another problem is:
What about with first-price auctions?
This could theoretically help with bid shading if google does in fact leverage 'private' clearing data on what the true value of the impression is?
I guess that goes to the kind of unclear ethics of owning all sides of the transaction. Help your ad buyer win at a lower price by not bidding as high, but publisher loses out on revenue. Or the above up the price on all sides. I guess for Google it's whatever has the highest margin %
- daniellarusso 6y agoI think Google also optimizes for lack of a better term, ‘engagement’. So, even if an ad has a higher margin, it may be better to ‘slot in’ a lower margin ad that would get more aggregate clicks, so the net profit is higher. Poor example: Ad is $10 per click but is only clicked once per month versus an ad that is $1 and clicked 20 times per month.
- dillondoyle 6y agoProbably better for publishers and consumers too. That's part of FBs algo too, though the CPC bidding is outdated in FB I think it leads to a bunch of crap you're just optimizing for bounces & fat thumbs.
- hamax 6y agoGoogle adx actually discloses clearing prices for auctions where you participate in, so this is even stranger complaint. https://developers.google.com/authorized-buyers/rtb/request-guide#real-time-feedback https://developers.google.com/authorized-buyers/rtb/request-...
- dillondoyle 6y agoThat's what I thought but didn't know for sure. I know that clearing price is in the official openRTB spec on loss notification.