How to Increase the Auction Pressure Being a Digital Publisher?

In the previous article, we analysed the factors that determine the final ad impression price in the Programmatic model. We also noted, that Digital Publishers can increase the value of the rate by increasing the so-called Auction Pressure. Let’s find out how to do it!

How to increase Auction Pressure for Publishers?

While remaining in the auction Programmatic ecosystem, the methods for increasing the Auction Pressure or directly affecting the final rate value of a given inventory may be as follows:

1. Implementation of Header Bidding,

2. Launching Open Bidding,

3. Connecting external partners with additional demand.

Ad. 1 Header Bidding, in the simplest terms, is a mechanism that allows you to query other, external SSP platforms prior to the main auction on the ad server of a given Publisher.

In other words, it gives you an opportunity to add extra demand to the auction and increase the chances of getting the highest bid possible for a given page view – higher than it would have been in the main auction (higher than the bid that would have been achieved in the main auction).

A very important element of such an implementation is the optimal selection of these external SSP platforms; as not all of those available on the market work well with Publisher data, a given GEO, given users, etc. Some of them are sometimes dedicated to mobile traffic only, while others work “better” in larger desktop ads.

What one needs to remember is the fact that the implementation of Header Bidding requires development and an AdOps team, and, what’s more, a business relationship with each of these platforms: i.e. a signed contract is required. Therefore, sometimes the independent implementation of Header Bidding is not easy for Publishers, and it is worth making recourse to off-the-shelf, easy-to-adapt, customized solutions.

Ad. 2 Another option for increasing the auction pressure is to launch the so-called Open Bidding.

Open Bidding (formerly EBDA) is a mechanism created by Google that allows you to invite external platforms to compete in one main auction. This is nothing other than Google’s response to the growing share of SSP revenue in Header Bidding. It can be said that Google preferred to “admit” external SSPs in order to secure margin levels; and since it could not eliminate them. Regardless of this genesis, it should be emphasized that Open Bidding can increase auction pressure, rate per page views, and ultimately also the revenues of Publishers.

It is very important that both these mechanisms, i.e. Header Bidding and Opening Bidding, can function on the same inventory. Again, it is important to select the SSP in each of these demand channels. Perhaps some are worth keeping only in Header Bidding, whereas others in Open Bidding only; whilst others do well by making recourse to both options.

Ad. 3 Another way of increasing the average Programmatic rate for a given advertising space is to expand additional external sources of demand plugged into the AdServer.

Here again, you have to be sure that the product will work well on the given inventory. Quite often this requires a series of tests, establishing the technical specification of a given issue and establishing the terms of business cooperation. It is worth noting that this method does not directly affect the auction pressure itself, but rather the final average value of the space.

Other ways to increase Auction Pressure: Private Auctions

Programmatic is not just an auction model. Along with the development of this method of monetization, methods of making space available and selling it, also in models based on traffic guarantees, have been developed. This was to increase revenues through the logic that “the guarantee should be more expensive”, so selling a given guaranteed view must be more expensive than in a model without a guarantee.

Let me start with a model that lies somewhere between non-guaranteed and guaranteed emissions.

Programmatic allows you to put up a space for auction in the so-called Private Auctions. So, similarly to the Open Auction, the threshold for entering the auction (the minimum bid) is set, but this time not for all buyers but for the selected group only. It is imperative to have relationships and contacts with such buyers.

How to increase Auction Pressure? Preferred Deal and Programmatic Guaranteed

Another way of increasing the final page view rate is to provide space in the Preferred Deal or Programmatic Guaranteed model.

This means that you need to set a specific rate for a given number of page views – it should be high enough so that there is no risk that such a page view sold in an open or private auction would be more expensive. This is important because these types of transactions take precedence over others. They have a higher emission priority.

For large Publishers, the impact of these guaranteed methods of selling views can be a key factor when it comes to the final value of their eCPM rate. It is worth mentioning, however, that unlike the Open Auction, these transactions require additional competences (traffic, deal setting) or additional human resources (contacts with Advertisers, creating a sales strategy – price lists, etc.).

Increase Auction Pressure for Publishers: Non-Programmatic Emissions

A very important determinant of the Programmatic rate may also be Non-Programmatic Emissions. Of course, this applies to the situation in which we are talking about the same inventory (the same advertising units). Then the so-called direct non-Programmatic campaigns take precedence over the other ones, so their scale can significantly affect eCPM in Programmatic.

In principle, it may work in a manner analogous to supply and demand. Namely, direct emissions take the scale of the Programmatic in a way. With a large number of these emissions, Programmatic will be provided with less Advertising space, which, given the constant demand, will mean that Programmatic Advertisers will be willing to pay more for this limited space (the auction pressure will be high). However, this is not always the case. We can imagine a situation in which there are not so many direct emissions leading to a commensurate increase in the auction pressure; at least to any great extent. In such a case, the eCPM Programmatic rate would be fairly constant.

On the other hand, if we were to look more at an average rate from a given site, we could encounter a situation in which the main unit, which on a daily basis has the highest eCPM, strongly influences this average eCPM of the site,and runs large-scale direct emissions. Then the overall eCPM may drop because the other units with a lower eCPM carry more leverage.
Many other activities not directly related to emissions in the Ad Server may affect the rate value in Programmatic.

Other ways to increase Auction Pressure for Publishers: Ongoing Improvements

These may be activities aimed at improving the site layout, or leading to an increase in viewability, which may indirectly or sometimes directly affect the rate (e.g. may be placed on spaces characteristic of higher VA).
In conclusion, it is worth being deeply aware of the specifics of your website in order to choose the right tools that will maximize the final rate for the ad page view sold and so as to efficiently manoeuvre the auction pressure.