Definition
In-app bidding, also known as header bidding for mobile apps, is a monetization strategy for app developers. It allows multiple ad networks to bid on the same ad inventory in real-time. The highest bidder wins the chance to display their ad, maximizing the revenue for each ad impression.
Process
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When an ad impression becomes available in an app, a request is sent to multiple ad networks simultaneously.
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Each ad network submits a bid indicating how much they're willing to pay for that ad impression.
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The highest bid is selected, and that network's ad is displayed to the user.
Benefits of In-App Bidding
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Increased Revenue: By allowing multiple ad networks to compete for each ad impression, in-app bidding often results in higher CPMs (Cost Per Thousand Impressions) and increased revenue for app developers.
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Efficiency: In-app bidding eliminates the need for waterfalling (a sequential process of sending ad requests), making the ad serving process more efficient.
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Fairness: All ad networks get an equal opportunity to compete for each ad impression, leading to a fairer and more competitive marketplace.
Considerations
While in-app bidding can increase revenue and efficiency, it also requires careful management and optimization. Developers need to choose the right partners, monitor performance, and adjust strategies as needed to maximize their revenue.
Conclusion
In-app bidding is a powerful tool for app monetization, allowing developers to maximize their ad revenue by creating a competitive marketplace for their ad inventory. However, it requires careful management and optimization to reap its full benefits.
