In-app bidding refers to a programmatic advertising method in which multiple ad exchanges compete in real-time to serve an ad to a user within a mobile application. Typically, in-app bidding uses a unified auction format, where all participating ad exchanges compete in a single auction for the ad placement. This allows for a more fair and transparent process, as all parties have an equal opportunity to bid on the ad space.
One of the key benefits of in-app bidding is real-time pricing and optimization of ad placements. With traditional ad buying and selling methods, pricing is often based on historical data and can be less dynamic. On the other hand, in-app bidding allows for prices to be determined in real-time based on the current demand for ad inventory. This results in more accurate and fair pricing, which benefits both advertisers and publishers.
Another benefit of in-app bidding is the use of a unified auction format. With traditional methods, different ad exchanges would have their own auctions, resulting in a fragmented and less efficient process. In-app bidding allows all participating ad exchanges to compete in a single auction for ad placements, resulting in a more fair and transparent process. This ensures that all parties have an equal opportunity to bid on ad space and that the highest bidder wins the auction.
In-app bidding also allows for more targeted and valuable audiences. Advertisers can target users based on their in-app behaviors, demographics, and other data, resulting in more effective and efficient ad campaigns. Accurate targeting can lead to higher conversion rates and, ultimately, more revenue for both advertisers and publishers.