Thursday, April 25, 2024

What is Bid Throttling?

Bid throttling enables publishers to produce “efficient” bids by temporarily stopping bid requests to SSPs after a certain number of no offers are received. Effective bidding raises win rates and enhances the quality of the inventory.

Bid throttling optimizes revenue

Bid throttling limits the quantity of bids, but by emphasizing quality over quantity, it can maximize revenue. The total win rate is increased by lowering the quantity of incomplete, poor-quality offers.

Bid throttling lowers carbon emissions

A webpage's load time is not free. Websites that are heavy and require a lot of resources use more energy than those that are light. A publisher's carbon footprint is decreased by lowering the quantity of ad requests. Visitors will value this reduced bandwidth due to the high cost of cellular data in certain areas.

Bid throttling supports better UX

Bid throttling can be used to provide a more seamless user experience by lowering delay. Rapidly increasing bid volumes can cause the CPU to work harder and render pages more slowly. Publishers can enhance page performance and thereby improve user experience by adopting bid throttling.

Bid throttling creates better advertiser relationships

Bid throttling can support maintaining positive connections with demand sources and advertisers. In the absence of bid throttling, publishers might overpower the auction with poor-quality bids, which could raise prices. Publishers can guarantee that demand sources only receive high-quality opportunities that are likely to be completed by temporarily removing "inefficient or wasteful bids" by setting bid volume limitations.

Video ad Throttling

Low-quality advertising with low view rates and high error rates also exists in video ads. Video ad throttling serves as a mechanism to block low-quality video ads from participating in the auction. The procedure carried out by demand-side platforms, or DSPs, ensures that video ads that perform well appear more frequently than those that do not, while also maintaining optimal performance and dependability of the advertisements. 

Exchanges set a threshold value for limiting advertising to protect both parties from low-quality content. When a video ad's error rate is over the specified threshold, video throttling takes place. The advertiser is not paid for impressions when a low-quality video ad inventory competes in the auction. 

Video advertisements work better than text and image ad formats and are a terrific method to grab viewers' attention. However, as you are aware, video advertising is pricy. What happens if you have premium video inventories on your website and you're waiting for improved CPMs from advertisers, but you get low-quality video ads played on your website? Nobody is going to benefit from this. As a publisher, you are unnecessarily wasting your inventory.

Several causes of high error rates in video advertisements include:

  • Incompatible ad creative.

  • incompatible media file formats.

  • VPAID problems.

  • Wrapper overload.

  • Media file timeouts.

  • Inappropriate sizing for desktop and mobile.

It is well known that not every DSP will bid on every impression. DSPs occasionally collaborate with exchanges to pre-filter inventory to achieve their goal. However, manual optimization is limited since it typically focuses on wide-ranging, relatively static components like publishers, platforms, areas, etc. That’s why bid throttling is implemented. Using bid throttling, ad networks may route traffic to DSPs that they genuinely want to work with rather than sending every impression to every DSP.

In conclusion, we can prevent trillions of possibly useless bid requests—and ones that DSPs probably didn't want—from being sent to DSPs each month by implementing an efficient bid throttling system. 


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