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Ecommerce / All Arise for Google's Exchange Bidding: Everything You Need to Know

All Arise for Google's Exchange Bidding: Everything You Need to Know

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After two years of vigorous tests, Google's in-house solution for header bidding– an alternative method of ad selling online –is becoming available to the public.

The Rise From Header Bidding to Google Exchange Bidding

Prior to the header bidding approach, Google had a 10-year reign as an unstoppable force in selling ads online. As a result, the company had first choice selection for the most profitable and intriguing ad inventory from anywhere on the world wide web, allowing it to resell with a higher price.

The enormous number of publishers that practiced using Google's Doubleclick for Publishers online service for ad selling put Google in place to win over any other company's best offer, sometimes by as little as just one penny. Google had cornered the online ad market.

In 2016, the favor shifted when the hack entitled header bidding was promoted through the entire web as something that can get around Google's position. The advantage to this approach is that it allows publishers to gather a group of bids from various partners at the same time, instead of being dedicated to just latch bids, like Doubleclick for Publishers for example.

Almost instantly, various publishers saw two-digit percent point gains of revenue before their very eyes, while also gaining additional control over customizing how their ad space was sold.

The higher rate of successful competition against big Google surged, so much so that the big names in the business, such as Amazon and Facebook, joined other competitors, thereby forcing Google to sit down and reevaluate how their business with publishers was being played out.

So presently, you could see Google's header bidding as their response, though they would disagree. Nonetheless, it’s revealing a gap after a time of being in development, and of course skepticism lies in the minds of critics and users alike.

Introducing Google's New Exchange Bidding

Like its popular competitor, Google's Exchange Bidding gives publishers the ability to increase sales by giving the allowance of multiple exchanges that are equal and in a fair auction.

In a quote from 2007 from Google, Exchange Bidding "is now a significant revenue driver for hundreds of publishers who have grown their programmatic revenue by an average of double-digit percentage points."

Thus ends the era of Google having first pick at the best inventory. The invention of exchange bidding forces Google to be on equal competition ground with all other industry competitors. Now publishers have the ability to view every bid in all auctions.

Some executives that have direct information regarding the program have stated that Google is now on fair bidding ground with other bidders, however, there are still a few glitches and issues to iron out.

As opposed to its competitor's method of business practice, in Exchange Bidding Google controls the duration partners are able to bid. This may cause revenue opportunities to slip through Google's fingers. Google continues to look at present issues and has faith that they will conquers said issues with their endeavors in the near futures.

At Bright Vessel, we make sure our client's success are fused with the latest and most promising technology trends. Contact us at Bright Vessel today to see how we keep our marketing ideas fresh, merged with the latest technologies.

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