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Shortly after the Google Migration to 1st Price – First Insights

A couple of weeks after the Google migration to 1st Price, read about Adomik observations.

Adomik, 10th October 2019

Google Move to 1st Price started on the 10th of September 2019. The full migration to 1st price, from 40 or 50% to (close to) 100% happened on the 26th of September 2019.

 

Further to our first analysis and initial observations, posted on the 26th of September, we note that there are no major changes since the move from 15% to 40 or 50% of first price impressions. 

 

In late September, the revenue generally stabilized and the CPM evolution is now staying flat. We can still notice a slight increase in volume.

 

While GAM remains in a strong position, Header bidding weight is not evolving much overall. However, we can see that the weight of some SSPs in the header is changing significantly.

 

Adomik’s general view is that Publishers have been cautious with Unified Pricing Rules, avoiding “high” floors that would have cut impressions and created a strong increase in CPM.

 

Furthermore, we can already see some specific buyers starting to “shade their bids”.

These analyses remain early observations still to be confirmed over time. We foresee that most of the bid shading impact will be visible in the coming weeks.

 

During the Google transition to 1st Price, below are Adomik first findings mid-way during the migration. 

Adomik, 26th September 2019

Google Move to 1st Price started on the 10th of September 2019 and is ongoing still

The Google Transition to 1st price auction is underway. The migration started on the 10th of September, and this transition is being overhauled.  The Adomik team of experts have been advising their publisher clients over the past few months, in order to help them understand and anticipate the impact of the migration on their inventory, carry out pricing simulation, and also to adapt their Pricing rules to match the new Unified Pricing Rules

What are the first findings midway and just a few days after the start of the transition?

Given the fact that Google does not simply allow us to isolate the traffic under 1st price auction, it is not very easy for us to draw analyses and conclusions, as this requires a specific setup. We deployed this specific set up together with a selection of publishers worldwide. 

Moreover, we suspect some bidders are probably not fully in a 1st price mode yet.

However, what we can confirm, is that at the beginning of the weekend 18th September,  about 40% of Publishers’ inventory were now sold with 1st price auction and 60% were still sold with 2nd price auction; only a few Publishers remained below this percentage.

What can be seen on Adomik Publisher clients’ inventory?

What strikes us and is obvious, is a general rise in CPM for Authorized Buyers (Ex.: Google AdX) and header. 

Generally speaking, what we see is an increase in revenue on the Authorized Buyers: higher CPM are to be seen. Moreover, we note a decrease in the relative weight of Header Bidding, despite the rise in CPM on the latter, and also a decrease in the Open Bidding (ex Google’s Exchange bidding).  

What would be the reason in your opinion?

The extra income on Authorized Buyers does not specifically come from Google Adwords but from other buyers. We think that it is not only related to the 1st price auction but also to the replacement of the Pricing Rules by the Google Unified Pricing Rules. Indeed, the UPRs create constraints for Adwords. For instance, floors cannot be targeted on Buyers and Adwords specifically, or anonymous prices are disabled. 

And there is more… 

An interesting point we notice – but this still needs to be confirmed over time: if we compare auctions sold on 2nd and 1st price auctions on the same floor, the CPM on 1st price auctions is much higher and generates more income. So we could conclude that more revenue will be generated for Publishers once the migration to 1st price auction is complete. 

Yet, when increasing the floor value, and still keeping an identical one in 1st and 2nd price auctions, the difference in revenue is no longer true. 

Until we notice the following: if floors are set up too high, the 2nd price auction ends up creating more revenue than the 1st price. This is what we found out when digging the analysis more into details. 

We conclude that this is most probably due to a “bid shading” effect. We had suspected this would happen. So our advice for publishers is to be vigilant and careful while setting up floor prices. 

New Data Connector Added: Yandex

Being the largest search engine service provider in Russia and the Commonwealth of Independent States, Yandex uses different types of targeting, half of which are based on user behavior. This allows publishers to focus on the interests of each visitor and show only those offers that are directly related to what interests him/her at the moment. Pairing Yandex to the Adomik Data Engine to make sense of your data and find insights to improve your inventory monetization and sales performance.

About Adomik Data Engine & Data Connectors

The Data Engine, the heart of the Adomik Platform. It has been designed for complex Ad stacks, to automatically collect, process, store and unify your monetization data from multiple sources. The Data Engine connects to your monetization partners via dedicated Data Connectors which use a specialized setup, put into place by Adomik, to collect data via APIs, query tools and FTP integrations. Data Connectors are constantly monitored by Adomik R&D teams.

Interested in seeing how the Adomik Data Engine connects to your monetization partners? Request a demo with our Team!

Or take a look at a selection of our data connectors here.

New Data Connector Added: Sublime

Benefit more from Sublime data with the Adomik data connector. Sublime creates and delivers tailor-made solutions that perform at scale for premium brands and publishers. By combining market-leading technology with a creative-first approach, Sublime simplifies the delivery of premium, user-friendly digital ad formats that elevate brand equity and drive results. By distributing video and display ad campaigns through Sublime, publishers get the most out of their inventory and strengthen their direct or programmatic sales while offering an interactive user experience. When you connect your Sublime data to the Adomik Data Engine, you’ll have the tools to dive into your performance metrics and find insights to better monetize your inventory.

About Adomik Data Engine & Data Connectors

The Data Engine, the heart of the Adomik Platform. It has been designed for complex Ad stacks, to automatically collect, process, store and unify your monetization data from multiple sources. The Data Engine connects to your monetization partners via dedicated Data Connectors which use a specialized setup, put into place by Adomik, to collect data via APIs, query tools and FTP integrations. Data Connectors are constantly monitored by Adomik R&D teams.

Interested in seeing how the Adomik Data Engine connects to your monetization partners? Request a demo with our Team!

Or take a look at a selection of our data connectors here.

New Adomik Case Study: Cox Automotive

Adomik-products-report-manage

 

“Before Adomik our Programmatic team used to pull the data from our monetization partners into an excel file, to pivot the data, chart it and start doing the analysis. With Adomik, we stopped wasting time on data collection to feed our advertising report, now we can finally spend our time in analysis with the right insights. “

 

 

Cox_Automotive_logo.svg

Ravikumar Munukutla
Principal Product Manager

 

Problem and Challenges

Header Bidding Adoption

Cox Automotive began implementing their header bidding wrapper in Q3 2018, auctioning their inventory not only in Google Adx but also in other exchanges such as Appnexus and Open X. Hence, they started to deal with a problem that concerns all big publishers: multiple monetization sources, multiple tools, multiple channels.

Solution

Cox Automotive’s Programmatic team found Adomik to be just what they were looking for. Cox Automotive has been using Adomik’s REPORT and MANAGE products since September 2018 to address those challenges.

Designed for a complex Ad stack, the Adomik Platform could collect their data from all monetization partners, consolidate it, enrich it and make it available in a single holistic dashboard.