Custom Bidder — Challenges and Benefits — Kritter
We know that the Programmatic environment follows a generalized set of protocols from Open- RTB as it has a one-size-fits-all approach. Some of its parameters may not suit advertisers. Here, Custom Bidder fills the gap. Custom Bidder goes one-up as it allows advertisers to fine-tune parameters of each campaign to achieve specific goals. The algorithm within is more flexible and amenable to customization.
What is Custom Bidder?
The Custom Bidder is essentially an algorithm that is designed to capture Bid Requests, analyzes it based on multiple factors and suggests the most optimal price to bid on the Bid Request.
Firstly, when a Bid Request is generated, it goes to a DSP. It filters and shortlists ads as per campaign targeting criteria. The shortlisted ads, along with any custom parameters, are then sent to the Custom Bidder Agent. Then the algorithm of Custom Bidder responds with the ideal bid price.
Advertisers can create a set of bidding rules and then instruct the software to generate such rules for each campaign.
Custom Bidder Challenges
Advertisers may assume that once they have a custom bidder in place it will do everything while they can focus on other matters. However, the reality is different. A few challenges can be -
- Data Feed: If the algorithm is not fed the right data and parameters are not well-defined then results will not be accurate.
- Interoperability: Advertisers should keep in mind that a custom bidder agent built for one ad tech platform may not work with another. Its algorithm has to be modified accordingly.
- Learning: The bidder needs data to consume and learn from. If the right data set is not available then users may not get the desired result.
- Latency: The result from Custom Bidder should respond within the strict timeout of 10ms, otherwise the Advertisers may lose the opportunity to bid on the Bid Requests coming in.
Custom Bidder Benefits
Advertisers can customize the Custom Bidding Technology according to their needs by adding their own logic to the algorithms. Other few features can be listed as -
- Possible to ingest First/Second/Third-Party Data: The facility to pass multiple kinds of data onto the algorithm makes it very convenient for Advertisers to increase their chances of winning the auction.
- Less resource needed: As the algorithm is guided by Machine Learning, it gets more robust with time.
- Adapted budget pacing: There will be no wastage of Advertiser’s budget.
- Custom creative decisioning: The best Creative is set forward based on the decision made by the algorithm.
Having these and many other features, Advertisers can fine-tune their Campaigns’ targeting with consequent improvement in returns on ad spend.
Advertisers can anytime opt for a Custom Bidder Agent developed for them by getting in touch with Kritter. It is one such Ad Tech company that assists with the development or modifications of Custom Bidder Algorithms. It also provides services to help advertisers get the most out of the Custom Bidder Agent.
Originally published at https://kritter.in on March 16, 2020.
