Auction Dynamics: Thoughtful and Robust Bidding Strategies

In the first article of our auction dynamics series, we covered the basics of how different types of auctions work. Today, let’s spend some time walking through how brands should apply thoughtful bidding strategies to both first- and second-price auctions.

Bidding strategies for different auction dynamics

The prevalence of first-price auctions has steadily increased in programmatic video advertising. Because of this shift, brands must fundamentally change their bidding approach in order to avoid the pitfalls of under- or over-bidding for an impression.

In this video, we’ll take a look at how brands can fall victim to “bid reduction.”

On the flip side, let’s take a look at how brands can fall victim to “bid inflation.”

A brand’s demand-side platform (DSP) and supply-side platform (SSP) capabilities can drastically help or hurt in these different bidding strategies, and it takes an understanding of what each partner can and cannot do to be successful. Next week, we’ll take a look at what questions brands should ask when evaluating their ad partners to optimize their auction dynamics.

You can get access to these ad partner questions now by downloading the entire Video Buyer’s Guide to Auctions here or check out the rest of our auction dynamics series:

• Week 1: Understanding auction dynamics
• Week 3: Evaluating ad partner capabilities
• Week 4: Running an auction performance analysis

This article was written by Nick Hoffman, director of global client education at SpotX.