Understanding Bid Auction Flow

2nd Price Auctions

In OpenRTB based market, the bid you place is not exactly what you pay while buying traffic. Some exchanges conduct 2nd price auction, in which, you pay only amount equals to the second highest bid on the same auction.

Maintaining Win Rate

When you bid on specific auction, your campaign is competing with campaigns set by other advertisers on other DSPs in market. Thus, win rate varies as per market conditions. That said, you may not receive uniform volume of traffic all the time, even if you keep bid prices exact. Campaign prices should be updated as per requirement of the volume. If you require traffic too quickly, you should bid higher.

Win rate is calculated by considering rate of number of auctions won by campaign to the number of bids placed by campaign. When Adacts DSP receives new bid request, it distributes bid requests accross active campaigns. To make sure your campaign receives proper amount of volume as per your requirement, you should monitor win rate of your campaign. If win rate is too low, the campaign may observe reduced volumes. Thus, adjust prices accordingly.

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