Introduced by Google in 2018, Google Open Bidding is a programmatic advertising solution seen as an alternative to header bidding. It offers publishers access to multiple demand sources and ad exchanges, creating stiff competition for ad inventory between the buyers. With an easy setup and little to no latency issues, this might be an ideal bidding system for publishers.
What Is Google Open Bidding?
Google’s Open Bidding is a programmatic bidding system that lets publishers invite external ad exchanges, SSPs, and networks to compete in a unified auction alongside Google AdX (Google’s own ad exchange) for ad inventory on their website. It’s a server-to-server real-time bidding process that happens on an ad server.
While Google has contracts with both parties, publishers first need to establish contracts with demand partners to be included (Google is not involved in the process).
How Does Open Bidding Work?
To start, publishers must have a Google Ad Manager account, as the Ad Manager handles all bidding requests between publishers and demand partners. After a user visits a publisher’s website, the process involves the following steps:
- The website sends an ad request to the server — When a user accesses the website, the code placed in the ad unit (tag) signals the server that an ad impression is available. Then, the server collects the available data on the ad inventory (size and format of the ad placement, device, user demographics, etc.).
- The server sends a bid request to demand partners — After the data is processed, the server filters through potential buyers (e.g., if the ad slot is 300×250, only buyers looking for this size will be eligible).
- The server collects bids and runs a unified auction — Once the buyers respond, a unified auction takes place on the server.
- The winning bidder’s creative is sent to the website — The Ad Manager compares and chooses the winning bid. The winning creative gets displayed on the publisher’s website.
Open Bidding Pros and Cons
Certain benefits come with Open Bidding:
- Minimized Latency — The bidding process happens on the server, not the user’s browser, significantly reducing page loading time and improving the publisher’s Core Web Vitals and the user experience.
- Easy to Manage — Publishers can manage multiple demand partners through a single interface, Google Ad Manager. This simplifies the operational aspects of working with various partners, reduced complexity, and is less time-consuming for publishers.
- Unified Payments — Google gathers the funds from demand partners and pays publishers according to its Net-30 payment schedule.
- Greater Ad Demand — Publishers can add as many partners as they want and maximize demand for their auction without affecting the speed of their website.
Publishers also need to consider the following disadvantages:
- No Cookie Data — This is a server-side solution, so it does not rely on cookie matching like header bidding (no knowledge of the user’s preference), which can result in lower performance and less relevant ads served on the website.
- No Transparency — Since Google controls billing, reporting, and optimization, publishers don’t have insight into the auction process. They know which demand partners contribute to their revenue but can’t see individual bids made by demand partners and how the auctions work.
Setting Up Google Open Bidding
To use Open Bidding, publishers must meet specific requirements. They need to have a Google Ad Manager 360 account and meet the eligibility criteria. This includes minimum traffic thresholds and compliance with Google’s policies.
In addition, your Ad Manager account must be linked to a primary ad exchange account. Make sure you meet these criteria, and review Google’s guidelines. If you already have an Ad Manager 360 account, navigate to your admin tab and select the option from the ad serving menu.
Google Open Bidding vs. Header Bidding
The most apparent difference between these two is where the auctions take place (server vs. user browser). Header bidding requires a header bidding wrapper. As a result, publishers often have page latency issues due to auctions happening in the user’s browser. On the other hand, with Open Bidding, publishers face transparency issues.
Header bidding gives them more control in terms of managing and customization. Especially with technologies such as Prebid, the header bidding process is more straightforward. Striking the perfect balance between the two is ultimately the best choice for publishers.
Google Open Bidding vs. AdSense
AdSense gives access to every publisher, unlike Open Bidding, which is limited to GAM 360 users. Nonetheless, Open Bidding offers higher CPMs, more revenue, unified auctions, and working with multiple demand partners. AdSense, in comparison, primarily serves ads from Google’s own inventory.
Google Open Bidding vs. Google ADX
With Open Bidding, multiple demand sources (including Google ADX) compete in real-time bidding. A unified auction takes place where Google manages the entire process. With Google ADX, advertisers bid individually, and publishers have more control over the auctions. Additionally, publishers using Google ADX receive a percentage of the revenue from ads served through Ad Exchange (determined by Google). While with Open Bidding, publishers profit from winning bids and receive a unified payment.
Bid Against Open Bidding in GAM
TargetVideo’s advanced feature bid against open bidding functions as a hybrid method (prebid + open bidding) to fully utilize publisher inventory and maximize revenue. The results from prebid auctions (winning bids) are sent to GAM open auctions to compete with open auction contenders. If the prebid creative has a higher CPM, the said creative gets the ad placement. If not, the highest CPM ad from the open auction gets displayed. This function enables publishers to earn more by cross-referencing two bidding methods.
Google Open Bidding With TargetVideo
As a Google MCM partner, TargetVideo offers publishers access to Google’s premium ad demand even if they don’t meet the publisher criteria. What’s more, with TargetVideo’s Managed Ads service publishers have an expert ad ops team ready to set up and manage their ad stack for them. This includes both open and header bidding auctions. Receive Premium Demand, choose from an array of versatile ad formats, get detailed reporting on all your auctions, and more with our powerful video revenue & engagement platform.
Experienced Ad Ops Team
Personalized Ad Stack Management
Advanced Ad Tech
Yield Optimization Engine
FAQ
1. What is Google Open Bidding?
Google Opening Bidding is a server-to-server real-time bidding solution that lets publishers invite external ad exchanges, SSPs, and networks to compete, along with Google’s own demand sources for publisher inventory.
2. What is the difference between ADX and Open Bidding?
The difference between ADX and Open Bidding is that Open Bidding utilizes a unified auction model and allows publishers to invite external exchanges. ADX, on the other hand, operates as a real-time programmatic marketplace.
3. What are the advantages of Open Bidding?
The advantages of Open Bidding are minimized latency, greater ad demand, easy management, and unified payments.
4. What is the difference between Open Bidding and header bidding?
The difference between Open Bidding and header bidding is that Open Bidding takes place on a server, while header bidding happens in the user’s browser, impacting page latency.
