What is Bid Rate ?
Bid Rate is a Programmatic Auction metric that shows how many Bids are occurring in the Auction. This is usually determined by one’s bid price and the frequency cap. The advertiser will only pay for impressions that are won. This bid rate is based on a variety of variables, including the target market, the relevancy of the advertisement to the user, the demand for the product or service at the time, and the competition from other advertisers bidding for the same impression.
Bid Rate Formula
(Number of impressions available / number of bids ) X 100 = Bid Rate %
For example, if there are 100,000 bids and there are 10,000 impressions available, this would be calculated as;
(10,000 / 100,000) x 100 = 10%
Programmatic Real Time Bidding Definition
Programmatic Real Time Bidding (RTB) is a method of buying advertising that is facilitated by software platforms and allows advertisers to bid in real-time for advertising inventory in an automated auction environment. The bid rate in Programmatic Real Time Bidding (RTB) refers to the price an advertiser is prepared to pay for a particular impression in real-time.
Increasing Your Bid Rate on the Buy Side
On the buy side, three key ways to increase your bid rate is to increase;
- the priority
- the pacing
- the price
Increasing one or all of these should have an immediate effect on your bid rate and thus, win rate and delivery. Also be sure to look things that can prevent bid rate from increasing like Brand Safety, Pre Bidding solutions and the targeting. You can also run a Bid Performance Report in your DSP to get an idea of underlying issues. If you’re trying to analyze your long-term bid rate over the course of time, keep in mind that most aggregated data is only kept on the platform for around 14 months and hourly data rates are only stored for up to ten days. This performance report can tell you a lot about both your win rate and your bid rate. Ask yourself if you are seeing the kind of activity you were expecting for different areas of your inventory. Is there anything to investigate between the bid CPM and the win CPM?
Increasing Your Bid Rate on the Sell Side
One of the best ways to increase the bid rate for a buyer is to setup a Deal ID. This should allocate budget to your Inventory.
Another strategy is to lower your floor price for that inventory or buyer. In the case of the Deal, then lowering the floor price of the deal. Look at where opportunities may have been missed with potential demand and which of your sources are actively bidding but not really winning anything. If an advertiser’s bid rate is 90% but their win rate is only 10%, then price is most certainly an issue to fix.
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