What is In-app bidding?

In-app bidding, also known as mobile header bidding, is a programmatic advertising methodology that allows mobile app publishers to offer their ad inventory to several demand partners or advertisers at the same time, fostering a competitive auction environment. Unlike waterfall methods where demand partners are prioritized, in in-app bidding, all bidders have an equal opportunity to win the inventory.

Formula

Example

Let’s say an app developer has 1000 daily active users. Here, in-app bidding allows him to auction ad space each time an ad is to be shown. Demand partners A, B, and C bid $2, $3, and $2.5 respectively. Despite Partner A perhaps being a preference in the waterfall method, Partner B with the highest bid wins in this real-time auction.

Why is In-app bidding important?

In-app bidding brings transparency in transactions by creating a level playing field for all advertisers. It can potentially increase the ad income for publishers since each ad impression goes to the highest bidder. This method also ensures a seamless and latency-free user experience by removing the need for the app to communicate with multiple ad networks individually.

Which factors impact In-app bidding?

Strategies for improving in-app bidding involve data-driven decisions and diversification. You can work towards optimizing the traffic, ensuring a quality audience, and hence attracting top-tier advertisers. Diversifying demand partners can also increase bids for your inventory.

How can In-app bidding be improved?

Several factors can impact in-app bidding. The quality of the user base, relevance of ads with respect of content, the prominence of ad space, and the rapport with advertisers can all influence your in-app bidding strategy.

What is In-app bidding’s relationship with other metrics?

In-app bidding and other e-commerce metrics, such as conversion rate, average order value (AOV), or customer lifetime value (CLV), are closely related. Higher in-app bidding generally leads to better viewability and interaction, which in turn could increase these metrics in eCommerce, thereby boosting the overall revenue.