Bid Requests’ Role in Mobile Advertising?

Bid requests facilitate the process of real-time bidding (RTB) for programmatic advertising, where ad space is auctioned off to the highest bidder.

A bid request is a piece of code to sell display ads and inventory details. It allows users to see ads most suited to them, and for multiple advertisers to use the same ad spot on a given publisher’s platform.

How Does a Bid Request Work?

A bid request is used like this:

1. When a user opens an app or visits a web page, the publisher’s ad server or supply-side platforms (SSPs) quickly generate a bid request. 

The publisher’s ad server or SSP is essentially the app or site saying, ‘I have ad space available, who wants to bid on it?’

The request contains ad space and user information about the ad slot, the user’s device, location, and the app information. 

2. The bid request is sent to an ad exchange, which shares it with multiple demand-side platforms (DSPs) and advertisers. Each DSP reviews the data and decides if they want to place a bid and how much. 

3. Bids are returned within milliseconds. The highest bid wins, and the winning ad is instantly shown to the user as the app or web page loads.

Data collected during the bid request: 

• Device info (Device type, OS, browser)
• Location (IP address)
• Ad slot details (ad size, placement)
• Device IDs (GAID, IDFA) & cookies
• Publisher info (site or app name)
• Privacy signals (consent status)

Pros & Cons of Bid Requests for Programmatic Ads?

Advertisers 

Pros of Advertisers	Cons of Advertisers
Target ads to the right users at the right moment.	Ads may show on pages with mismatched content.
Ad fraud risks, like fake impressions or clicks in auctions.	Requires careful setup to avoid poor ad placements.
Adjust bids instantly based on real-time signals.	Ad fraud risks like fake impressions or clicks in auctions.
Competitive auctions lower advertising costs.	Complex to manage without technical expertise.

Publishers

Pros for Publishers	Cons for Publishers
Boost revenue by selling ad space to the highest bidder in real time.	Risk of ads showing next to unsuitable content if controls aren’t set.
Set floor prices to boost in-app earnings per ad impression.	Requires technical setup (SSPs, header bidding) to perform well.
Access multiple bid advertisers simultaneously & premium deals.	Auction prices vary.
Full control over blocking unwanted ads or categories.	Vulnerable to ad fraud, like domain spoofing or bot traffic.
Transparency on bids, buyers, and pricing.

How Bid Requests Work in Programmatic Auctions?

Open Bidding

The server-to-server auction sends a bid request simultaneously to multiple ad exchangers, SSPs, and ad networks. Each source evaluates the opportunity, and the top bid is selected for that ad impression, all happening in real time.

Header Bidding

Header Bidding uses JavaScript code (header wrapper) placed on the publisher’s app. The bid request goes out to multiple demand sources before calling the ad server.

This setup lets publishers invite multiple buyers to bid at once, often beating traditional waterfall bidding setups in yield. Bid requests in the header bidding process create a fairer, more competitive environment, boosting fill rates and CPMs.

Real-Time Bidding (RTB)

In RTB, every ad impression is auctioned individually in real time. A bid request is triggered the moment a user opens an app or web page. This request includes rich data (device type, location, app info, user behavior) and is sent to multiple DSPs.

Each DSP analyzes the data and decides how much to bid for that single impression. The ad from the highest bidder is shown instantly as the app loads.

Expert Insight: Real-Time Bidding with adjoe Academy

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How to Optimize Bid Request: Best Practices

For Publishers (Selling Ad Space)

Publishers optimize bid requests to attract higher bids for their ad inventory. Best practices include:

• High-Quality Bid Requests: Provide detailed, accurate user data. More relevant data leads to better targeting and higher bids from advertisers. 

• Optimal Ad Formats & Placements: Experiment with different ad sizes and positions on your app, using performance data to identify combinations that yield the best revenue.

• Boost Bid Value with Accurate Data: Send rich, accurate bid data to help DSPs value your inventory and drive higher bids.

For Advertisers (Bidding on Ad Space)

Advertisers optimize bid requests by strategically bidding to reach their target audience efficiently. Best practices include:

• Define Clear Campaign Goals: Know what you want to achieve (e.g., brand awareness, traffic, conversions, ROI) as this impacts your bidding strategy.

• Conversion Tracking: Ensure accurate conversion tracking. Automated bidding process heavily relies on this data for effective optimization.

• Automated Bidding: Use smart bidding strategies (e.g., Target CPA, Target ROAS) for real-time optimization, and monitor performance.

• Optimize Creatives: High-quality ads and conversion-optimized landing pages are essential; a good bid is wasted on a poor user experience.

• Analyze and Adapt: Continuously analyze historical data, A/B testing to refine your strategies for increased ROI.

👉 Dive deeper: How to optimize programmatic bidding strategy? 

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