Using Bid Shading

In this article you can read more about the Bid Shading feature.

Overview

Amobee's Bid Shading Flat Bidding feature allows you to dynamically optimize the bid price in a first price auction environment to ensure you are not overpaying for your ad impression, and to maximize your ROAS.

To help you lower your eCPM on line items that are delivering well, Bid Shading option has been added on the Line Item page.

When bid shading is enabled for a line item participating in flat bidding first-price auction, the Amobee Platform algorithm predicts a win price for each bid. If the entered fixed bid price is higher than the win price, then, the Amobee Platform dynamically lowers the bid price to win price to help you win with less spend per bid, thus maximizing ROAS (return on ad spend). 

Bid Shading:

• Works on open auctions and private auctions.
• Won’t work on Unreserved Fixed and Programmatic Guaranteed deals.
• Remains free for Automated bidding (dCPM).
• Beta tests successfully ranged between 15% and 22% decrease in eCPM for Open Auctions (which translated into a CPM reduction of $1.50 on average).
• Won’t be auto-enabled in flat bidding line items. Enable Bid Shading checkbox in the Bid Shading section must be checked to be working.
• When enabled, the Amobee Platform automatically adjusts bid price for each impression on Flat Bidding campaigns.
• You can opt out of bid shading

Benefits

• Generate savings while driving performance
• Make automatic bid adjustments in real-time
• Reduce Media Waste

How Bid Shading Works

1. Advertiser enters a fixed bid price in a first price auction environment, and decides to activate bid shading in the line item.

2. For each bid request, Amobee Platform will predict a win price.

3. Whenever the bid price is higher than the predicted price, the Amobee Platform will automatically lower the bid price to create savings.

4. Ad and bid price are returned to an exchange.

To view your bid shading saving results, go to the LI for which bid shading has been enabled and click Column Set >Custom to select Bid Saving Fee and Bid Saving Calculated values columns at the line item level.