Publishers are increasingly using unified auctions to maximize their advertising revenue. Bidding, as it's more commonly known, has already made significant inroads in desktop and mobile web, and now we see app bidding gaining similar momentum.
The concept behind bidding is simple: the advertiser willing to pay the most to reach a person with an ad gets to serve the ad. It provides an alternative to waterfall mediation, in which ad servers prioritize demand sources (ad networks, exchanges, and demand side platforms) based on historical average prices rather than the true value of the impression. With bidding, publishers can now allow demand sources to compete in real time for every single ad opportunity with the exact price they are willing to pay.
We have seen the positive impact that bidding can have on publisher revenue both for app and mobile web. In March 2016, we announced our support for header bidding alongside industry partners and saw significant increases in CPMs for publishers using Audience Network. This past June, we extended that support to app bidding via both in-house (direct to publisher) and third party mediation and shared our initial mediation partners and promising results from early publisher tests.
We remain focused on expanding our support for both header and app bidding and continue to grow our set of bidding technology partners to now include Google, as we join their Open Bidding program.
Inviting multiple demand sources to bid in a unified auction maximizes the revenue publishers receive from their inventory, helps advertisers reach their target audiences more effectively and efficiently, and provides more relevant ads to consumers. We will continue to drive industry adoption of bidding and look forward to working with technology partners and other demand sources to help achieve our vision of a fair and efficient ad tech ecosystem.
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