Before we talk about Google Open Bidding benefits for advertisers and publishers, let’s take a trip down memory lane. Apple’s App Store debuted in 2008, as did Google Play’s ancestor, Android Market. While many of the original smartphone apps cost money to download, it was always a “one and done” purchase – app users weren’t whipping out their credit cards to buy extra lives in the middle of a game. In these early days, the most popular mobile apps were free to install and use.
Everything changed in late 2009, when an OS update enabled in-app purchases. This ushered in an era of “freemium” apps, opening doors to massive revenue for developers. In the following years, developers have found many ways (all with pros and cons) to make money off their apps. These revenue streams include:
- Paid apps with a one-time app installation cost
- Freemium upgrade options
- Subscriptions for access to the app or other services
- In-app purchases, including microtransactions, consumables, and non-consumables
- Data monetization (a.k.a., selling users’ data)
- Sponsorships and co-branding
And, of course, in-app advertising! (That’s why you’re reading this, right?)
While header bidding is still alive and well, the shift to in-app bidding has revved the engines of app monetization in recent years. In-app revenues have grown nearly 45% in just the last two years.
What is Google Open Bidding, and why does it matter?
Open Bidding allows demand partners to compete for ad inventory in a single auction with real-time, server-to-server bidding. This ensures publishers can connect to and access premium demand on in-app bidding platforms of their choice, while offering demand partners fair and complete access to a publisher’s in-app inventory. Becoming an official Open Bidding partner is a move that makes sense for Verve as we work to create the best-possible advertising ecosystem for everyone involved.
Verve’s Aviran Edery, SVP of Marketplace, put it this way:
Neutrality, transparency, and reliability are the core tenets of our marketplace. Google’s Open Bidding platform offers improved monetization options to publishers, and unrestricted access to high lifetime value (LTV) users to demand partners. Democratizing access on both sides of the advertising ecosystem is key, and we are excited to partner with Google in our efforts to build a neutral marketplace.
ADWEEK WIRE, November 18, 2022
That said, let’s look at some details of how Verve’s integration with Open Bidding will be a game-changer for publishers and advertisers alike.
How does Open Bidding benefit app publishers?
For global publishers, Open Bidding offers a new way to access Verve’s marketplace. This combines the best of Google’s monetization technology with Verve’s robust ad-serving capabilities. As an Open Bidding partner, Verve helps publishers see many benefits, including:
- Higher yield on ad inventory. Open Bidding lets publishers invite third-party demand partners to compete for inventory in a unified, single auction with real-time bidding (RTB). This increases competition, eCPM, and revenue.
- Seamless UX. The streamlined auction dramatically decreases app latency compared to some other bidding methods, making for a smoother user experience.
- Increased transparency. The server-to-server auctions allow for simplified reporting, trafficking, and billing.
How does Open Bidding benefit demand partners?
Imagine a vast quantity of premium placements, all from thousands of leading monetized apps. Accessing and buying this ad inventory can be difficult, even elusive, for many demand partners. The Google Open Bidding-Verve Marketplace integration lets demand partners tap into this incredible supply of high-quality ad inventory and premium app users. This increased access means that demand partners can achieve three major wins in one fell swoop:
- Diversify and scale ad spend with 100% access to a publisher’s in-app inventory
- Optimize ad spend on both brand and performance goals
- Increase campaign reach and performance
What’s next for in-app bidding?
Looking ahead, app developers can soon layer their ad inventory with rich contextual signals, making their supply even more desirable. Verve’s exclusive privacy-first targeting solutions, available to demand partners on the Verve Marketplace, will then help match the best audience segments with that premium supply.
As ad tech braces for a world without device identifiers, these kinds of innovations are critical to future-proofing advertising solutions.
To learn more about the integration with Google Open Bidding platform, contact Verve.
