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1、IN-APP BIDDINGThe Secret to Boosting Your Monetization in 2020Table of Contents Introduction Looking Back at the Traditional Ad Monetization Model1.What is a Waterfall?2.Limitations of the Waterfall Model0507080940203 In-App Bidding:Redefining In-App Ad Monetization1.What Is In-App biddin
2、g?2.How Does In-App Bidding Work?3.How In-App Bidding Outshines the Waterfall Model4.Better UA&Higher Quality Users1.Comprehensive SDK Capabilities2.C2S and S2S Integration Solutions Supported3.Mintegral SDK Is Available on Top Ad Mediation Platforms4.Introducing HiBid,the In-App Bidding Open-Source
3、 Framework1.In-App Bidding and the Waterfall Model Will Coexist in the Near Future2.What Should Mobile App Publishers Do Next?Looking Ahead:Will In-App Bidding Replace the Waterfall Model?0113020510 Mintegrals In-App Bidding Solution16 The In-App Bidding Era Has Come.Are You Ready?In-App Bidding,The
4、 Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedI.IntroductionWith global users quickly shifting from PCs to mobile devices,its safe to say that we have entered the“Mobile-first Era”.According to App Annies The State of Mobile 2020,there were over 204 billion
5、 total app downloads across the world in 2019,with users spending an average of 3.7 hours per day on their mobile devices.Mobile apps have become an important part of peoples lives.As users spend more time on mobile apps,driving advertisers to invest more into in-app ads,which in turn creates more m
6、onetization opportunities for mobile app publishers and developers.In-app advertising(IAA)has always been one of the major ways mobile app publishers make profit.The recent wave of hyper-casual games sweeping the world has also made more and more mobile game and app publishers understand the opportu
7、nities that the IAA monetization model brings,which has pushed them to invest more resources into in-app ads.Today,in-app ads are a massively important source of profit for mobile app publishers around the world.If mobile app publishers want to generate strong and sustainable ad revenue,they need to
8、 reevaluate their existing methods and pursue better monetization strategies.In-app bidding is exactly that promising solution that will enable publishers to further boost their advertising revenue.We have created this e-book to help publishers gain a better,more comprehensive understanding of in-ap
9、p bidding.We will start with a background of the industry as a whole,then we will provide you with more information on this new technology including its definition,origin,and advantages over traditional ad monetization models.As we look at future trends,we will offer publishers reading this e-book s
10、ome advice and suggestions on what they can do to embrace this new technology and take full advantage of its benefits.01In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedIn-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright
11、2020 Mintegral All Rights ReservedII.Looking Back at the Traditional Ad Monetization Model To better understand how programmatic mobile advertising developed and how important real-time bidding auction technology is for in-app ad monetization,we first need to understand the Waterfall model,which has
12、 long been mobile publishers primary monetization method.As mobile apps become more and more popular,publishers start to look into how to monetize their apps to increase their ad revenue.For publishers,the easiest way to do this is to integrate ad network SDKs and request ads from them.The relevant
13、ads coming from these networks will then be displayed inside the app to the users,which translates to ad revenue for the publishers in question.However,integrating a single ad networks SDK is not enough,as their apps ad fill rate and eCPM cannot meet the publishers monetization needs.To mitigate thi
14、s,publishers began adding more ad network SDKs to their apps in order to reach as many potential advertisers as possible.This resulted in the need of a way to manage all these SDKs efficiently,which led to the birth of ad mediation platforms.These platforms help publishers find the best way to prior
15、itize which ad network SDKs have to get the first chance to fulfill an ad request-these ordered lists of ad network SDKs or demand sources are called“Waterfalls”.In the Waterfall model,ad requests will be sent and ads will be returned based on a predetermined order,which can be based on a manual set
16、 of priority rules or historical average pricing data.Once the Waterfall is initiated,ad mediation platforms help publishers send requests to ad network A in the ordered list.If it responds to this request,then it will return ads;if not,then the opportunity to show an ad will be passed on to ad netw
17、ork B,then ad network C,and so forth.Once an ad network responds to an ad impression and fills that impression,the monetization process for that ad impression will be closed immediately and subsequent ad networks SDKs will no longer be able to participate in the ad request process.1.What is a Waterf
18、all?02In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedAd networkSOLDSOLDSOLDUNSOLDAd networkAd networkUNSOLDUNSOLDAd networkIn the Waterfall model,ad requests and ad impressions will be processed based on certain sequences.This guarantees,to
19、 a certain extent,that high-value ad networks or buyers will be given the priority of getting the ad display opportunities,while helping publishers make the process more efficient.03Although the Waterfall model is highly efficient,its limitations have become more apparent as publishers are looking f
20、or better monetization results.Under the Waterfall model,ad requests will be sent and ads will be returned based on the predetermined priority order or historical average pricing data.Ad networks with higher priority are more likely to obtain ad opportunities,while those on the lower scale may not b
21、e able to get a chance even if their bid is higher.This priority-based model is ineffective and unfair,not to mention that it cannot ensure publishers get the highest asking price for each ad impression.This can result in publishers underestimating the inventorys actual value which in turn means los
22、ing profit.2.Limitations of the Waterfall ModelInability to Maximize Ad RevenueIn-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights Reserved04With ad mediation platforms gradually evolving their products and technologies,combined with the widespread use
23、of tiered pricing strategies,ad networks have gained the ability to place multiple bids in the Waterfall.This approach has increased,to a certain extent,competition among participating ad networks.However,because the way ads are requested and returned is now more complex,the entire process can easil
24、y lead to ad latency.Increased Ad LatencyIn order to generate higher ad revenue,publishers usually need to have a dedicated operations team to manage and optimize ad Waterfalls for each app.At the same time,publishers must also constantly adjust the order in the Waterfalls according to each ad netwo
25、rks performance.As these tasks can be extremely time-consuming and labor-intensive,this results in significant operational costs for the publishers.High Operational Costs for Waterfall OptimizationIn-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights Rese
26、rvedIn the Waterfall model,the way ad networks are prioritized is crucial,and networks with lower priority will most likely not get ad impression opportunities.Therefore,some ad networks may make a deal with publishers in advance to take the top slots on the ordered lists,so as to gain priority acce
27、ss to publishers ad inventories.Besides,since only one ad network bids on each ad request under the Waterfall model,which means there is little competition,it is difficult for publishers to get access to abundant ad sources.As a result,they will not be able to get enough data to run an in-depth anal
28、ysis and optimize their ad revenue streams in a more transparent,efficient fashion.Lack of Transparency and Diversity05In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedIn-app bidding is also known as“header bidding for mobile apps”.Header bid
29、ding,a method used for desktop websites,was first suggested by ad platform AppNexus in 2015.At that time,DoubleClick,the industrys top ad exchange,had monopolized the mobile ad market,and most web publishers were only connected to DoubleClick for ad monetization,which limited the growth and developm
30、ent of other ad exchanges.To reduce that influence,AppNexus released a series of open-source code solutions.By embedding that code into the web page headers,web publishers could send ad requests to different ad exchanges simultaneously and sell their ad inventories to the highest bidder to earn more
31、 income.As the code was built into the web page header,this model was originally known as“header bidding”.To deal with the limitations and problems of the Waterfall model,as well as help app publishers maximize their ad revenue,in-app bidding technology was born.III.In-App Bidding:Redefining In-App
32、Ad MonetizationIn-app bidding is an advanced programmatic bidding technology that allows multiple ad sources to simultaneously bid on publishers in-app ad inventory,with the highest bidder winning the ad impression.Put simply,in-app bidding can help publishers maximize their ad revenue from multiple
33、 ad sources via in-app auctions.1.What is in-app bidding?DSP/Ad Network ABID$3DSP/Ad Network CBID$2.6DSP/Ad Network DBID$3DSP/Ad Network BBID$3.306In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedHeader bidding has been used extensively for d
34、esktop websites,but since more and more users started spending most of their time online via mobile devices,this bidding technology was gradually introduced to the mobile world as well.Since there is no actual header in mobile apps,it was named“in-app bidding”.As many leading companies in the indust
35、ry launched their own in-app bidding solutions in 2019,thats when this bidding technology started to be implemented and developed at a fast pace.As a result,it is expected that in-app bidding will be used by most of the players in the industry from 2020 onwards.201820192020Pushedto mobileIncreasedca
36、pabilityWidely usedin the industryGrew on web advertising2015In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights Reserved07$3.45$4.00Publishers,or“sellers”,simultaneously ask multiple ad networks for bids;Ad networks bid and immediately return their pri
37、ces to publishers;The highest bidder wins the ad impression;The winning SDKs ad gets displayed.In-app bidding is a programmatic bidding technology designed to meet mobile app publishers ad monetization needs.The process is similar to how auctions are run,and this is basically the way it works:As a m
38、atter of fact,in-app bidding builds upon traditional real-time bidding(RTB)on in-app traffic.Looking at the way in-app bidding works,we can see that this technology has two core features:It is worth mentioning that the fundamental difference between in-app bidding and RTB is that creatives and templ
39、ate rendering of in-app ads are highly dependent on SDKs,while the traditional RTB model does not need bidders SDKs when interacting with ad networks.Without the bidders SDKs,creative and template capabilities for different ad networks are not visible under the RTB model.This may lead to relatively
40、poor user experience,so ad networks will not place high bids-which will,of course,affect publishers ad revenues.2.How Does In-App Bidding Work?In-app bidding allows publishers to send ad requests to multiple ad networks at the same time and all ad networks engaged in the bidding process will offer t
41、heir prices simultaneously.Ad requests and bidding happen in real time,so every ad request can have access to more ad sources simultaneously,rather than being available to a single ad network at a time,as per the traditional Waterfall model.Unified auctionIn-app bidding allows numerous ad networks t
42、o run unified auctions for each ad impression,and the highest bidder obtains the ad impression.First-price auction ensures that publishers get increased ad revenue.Highest price settlement3.How In-App Bidding Outshines the Waterfall ModelIn-app bidding,designed to bid on each ad impression,allows mu
43、ltiple ad buyers to participate in the bidding process simultaneously,and just like with regular auctions,the highest bidder wins.The more ad sources participate,the higher the bidding density,and this fiercer competition means that publishers can receive higher bids,thus maximizing ad revenue from
44、each ad impression.At the same time,real-time bids through in-app bidding are more accurate in estimating the real price of each ad impression,compared to bids based on historical average CPM data,thus helping publishers sell ad impressions at their true value.Maximized Ad RevenueCompared with the p
45、rocess of sending ad requests in sequence and only getting one request at a time under the Waterfall model,the real-time,parallel auction model that in-app bidding offers reduces the time required for calling ads and waiting for them to load.This significantly lowers ad latency,which is an issue und
46、er the Waterfall model,while also enabling ads to be filled and displayed significantly quicker.Lower Ad LatencyPublishers need a great deal of human resources to regularly optimize the priority order under the traditional Waterfall model.The optimization process is tedious,labor-intensive and time-
47、consuming,which translates to high operational costs that many companies,especially the small and medium-sized ones,will struggle to cope with.At the opposite end,the automated,real time in-app bidding is more efficient,saves more time and is easier to manage,allowing publishers to spend their human
48、 resources elsewhere,like new or better product features,improved user experience,and more.Improved Operational EfficiencyThe publisher no longer needs to spend a lot of time and effort managing and optimizing the Waterfall.More importantly,in-app bidding provides a higher level of transparency,as d
49、ata like who is bidding,bidding trends,and even where and when the most valuable users are will be readily accessible.This leads to a better understanding of the real value of a publishers traffic and helps them further increase their ad revenue.Increased transparencyThere are four ways in which in-
50、app bidding not only tackles the Waterfall model issues,but also adds further improvements:08In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights Reserved09In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights
51、 Reserved4.Better UA&Higher Quality UsersApart from helping solve the traditional problems of the Waterfall method and maximizing ad revenue,in-app bidding can also offer significant benefits to advertisers.In-app bidding allows multiple ad networks to simultaneously bid for every ad impression inst
52、ead of the Waterfall model based on a set priority order,making it a fairer bidding process for all advertisers.Fair Bidding OpportunityWith in-app bidding,every advertiser can bid for each ad impression.Without the priority restriction from the traditional Waterfall model,advertisers can reach targ
53、et users more efficiently in a larger traffic pool,and they can quickly run large-scale customer acquisition campaigns.User Acquisition Campaigns at ScaleWith in-app bidding,ad platforms need to show their technical capabilities such as data analysis and algorithm models to identify users more accur
54、ately,helping advertisers acquire users at reasonable costs.Therefore,in-app bidding can help advertisers improve the quality of their user acquisition while keeping their costs down.Reach the Right Users More PreciselyIn-app bidding makes the campaign process more transparent,so advertisers can see
55、 clearly where their users come from and how their budget is spent by looking at the data.At the same time,they can analyze the overall conversion rates and user behavior data to further optimize subsequent campaigns.Transparent Ad Campaign ProcessIV.Mintegrals In-App Bidding SolutionMintegral launc
56、hed its in-app bidding solution in August 2019,becoming one of the first ad platforms in the world to support this technology.By integrating with the latest version of Mintegral SDK,mobile app publishers or developers can get higher ad revenue thanks to this new technology.The technical implementati
57、on of in-app bidding relies on the capacity of ad SDKs.Currently,the number of Mintegral SDK DAUs has reached 500 million,and the SDK has been integrated into 26,000+mobile apps by more than 3,500 mobile app developers worldwide-all of this is possible thanks to its stability and significant number
58、of powerful features.The Mintegral SDK supports all standard ad formats including banner,native,video,and interactive ads and it is capable of rendering various creatives and templates automatically,generating a better ad experience for users.At the same time,the Mintegral SDK is certified by IAB Te
59、ch Lab Open Measurement SDK,which ensures measurement and viewability of all ads provided by Mintegral,meeting advertisers transparency requirements and making publishers traffic value more attractive.1.Comprehensive SDK CapabilitiesWhen integrating the Mintegral SDK,publishers can choose between Cl
60、ient-to-Server(C2S)and Server-to-Server(S2S).Each of these solutions comes with its own different features,so either option can work depending on publishers own needs.With the Client-to-Server solution,publishers call bids from the client side SDK,with the bidding process taking place on the client
61、side.This solution is simple and direct,but it is also less flexible given that the bidding occurs on the client side.Besides,the client network may encounter latency issues,which will affect the bidding process.2.C2S and S2S Integration Solutions Supported10In-App Bidding,The Secret to Boosting You
62、r Monetization in 2020Copyright 2020 Mintegral All Rights ReservedADWe need an ad,how much do you bid?Let me evaluate!You win,you can show your ad!The publisher needs an ad,how much do we bid?I want to acquire the winning ad,here is the token.We bid$10,here is the token.We bid$10.Please wait!Show th
63、is ad!124637Publishers APPMintegral SDKMintegral Server5Since H2 2019,our SDK has been available on global ad mediation platforms including ironSource,AppLovin,Fyber and MoPub.Publishers can integrate the Mintegral SDK via our partnered ad mediation platforms and get quality ad resources through in-
64、app bidding.3.Mintegral SDK is Available on Top Ad Mediation PlatformsWith the Server-to-Server solution,it is the publisher or ad mediation platforms server that makes an ad request(usually an OpenRTB request)and the bidding is completed on the same server.This solution features low network latency
65、,premium efficiency and flexible bidding,but it requires publishers to build their own servers,which will increase integration costs.11In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedWe bid$10,here is the token.Let me evaluate!Please wait!Sh
66、ow this ad!ADWe need an ad!Acquire the ad,here is the token.We need an ad,how much do you bid?Mintegral wins,please let their SDK show the ad.1245637Publishers APPMintegral SDKMintegral ServerPublishers ServerIn order to help publishers improve their integration efficiency,have greater transparency
67、and control,while also helping them obtain more ad resources and optimize their monetization strategies,Mintegral launched HiBid,an open-source framework based on the Client-to-Server model.Thanks to HiBid,publishers can run their own in-app bidding solutions.HiBid,which offers multiple integration
68、interfaces to ad networks capable of running client-side bidding,can increase the integration efficiency and speed up access to more ad sources.HiBid can feed back each bid from all ad networks transparently and in real-time.Also,HiBid can quickly deploy fixes or adjustments in case of errors or abn
69、ormal situations,effectively cutting down on operational costs.Moreover,HiBid supports custom configurations to address special requirements and is built for collaboration so it can be further improved based on publisher feedback.4.Introducing HiBid,the In-App Bidding Open-Source FrameworkSDKSDKSDK1
70、2Get the HiBid framework on Github!Get the codeGet the codeIn-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedAs more leading ad platforms in the industry begin to support in-app bidding,an increasing number of mobile app publishers are also em
71、bracing this new technology.According to a survey conducted in September 2019 by Sapio Research on 400 marketers and 400 app developers in the UK and the US,two-thirds(67%)of respondents believed that in-app bidding represented the future of ad monetization,and more than three-quarters(77%)noted tha
72、t they were considering replacing the Waterfall model with in-app bidding.Nonetheless,it takes time for a new technology to be widely adopted and,for in-app bidding,there are still some challenges ahead.In-app bidding and the Waterfall model will co-exist for a certain period of time,and there are s
73、ome reasons for that:First of all,excluding some leading ad platforms,many do not support the in-app bidding model at the moment,so they are temporarily unable to participate in the bidding process,which means that publishers ad revenues will suffer to some extent.Secondly,both the domestic and over
74、seas high-quality media still have a certain premium capacity.Although advertisers may spend more on the first slot in the Waterfall model versus the in-app bidding model,some are still willing to pay this premium price for brand awareness or other purposes.Finally,the widespread use of the in-app b
75、idding model relies on it being promoted and adopted by the entire industry,including ad platforms and publishers.In particular,in-app bidding relies on the ad platforms technical capabilities.For example,an algorithms accuracy can help identify the right target users and reveal the true value of an
76、 impression,which increases in-app biddings value significantly,but ad platforms have to improve their products and technologies for this to work.1.In-App Bidding and the Waterfall Model Will Coexist in the Near FutureV.Looking Ahead:Will In-App Bidding Replace the Waterfall Model?In-App BiddingWate
77、rfall13In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedWeve learned about the advantages of in-app bidding and the unprecedented improvements that this model offers publishers:a more efficient process,more ad sources,better prices,higher ad
78、revenues,and more rich data insights to further optimize their monetization strategy.At the same time,the implementation of in-app bidding technology will play a positive role in taking the entire industry to the next level.The industry is gradually becoming more open and transparent,thanks to three
79、 main things:the industry as a whole is becoming more mature;more ads are being delivered programmatically;advertisers are keeping a closer eye on their budget spend.In-app bidding,which conforms to these requirements and is highly consistent with the direction the industry is heading,will naturally
80、 become the only way forward,becoming the industrys next major growth opportunity.As the main parties to benefit from in-app bidding,what actions should mobile app publishers take?How can they ensure a successful transition from the current ad monetization model to this new technology?Here are our s
81、uggestions:Evaluate your ad monetization goals and available resources.Every publisher or app has their own monetization strategies,goals,and resources they can invest.When and how to adopt in-app bidding depends on a publisher first running a comprehensive self-assessment in order to ensure they ma
82、ke the transition at the right time.Run tests repeatedly to strike a good balance between the two models.As of now,in-app bidding has not completely replaced the Waterfall model,indicating that they will co-exist for some time.We would suggest that publishers make good use of the respective advantag
83、es each model has to offer for the time being.For example,they can test the two models on different apps or at different stages of the same app,in order to find the best way to maximize returns in each case.Adopt the integration solution that is most suitable to your own needs.Both S2S and C2S have
84、their own pros and cons,so there is no right or wrong answer.Publishers need to run their own assessments and choose the solution that is most cost-effective,best matches their own use cases,and offers the highest returns.2.What should mobile app publishers do next?14132In-App Bidding,The Secret to
85、Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights Reserved1554Choose ad platforms with strong technological capabilities.Publishers should choose comprehensive ad platforms that can offer significant ad resources,large amounts of user data,cutting-edge algorithmic models,and qual
86、ity creatives.At the same time,these ad platforms need to provide measurable viewability and transparency in order to give publishers more confidence to run offers from both brands and performance-oriented sources.Choose the right ad mediation platforms.For publishers who prefer ad mediation platfor
87、ms for their monetization needs,they should choose to partner with top platforms that support both the Waterfall model and in-app bidding,so as to get a steady access to more ad sources globally and increase their advertising revenue.Build an in-app bidding solution in-house with open-source tools.F
88、or publishers focusing their product strategy on ads,they might want to set up internal in-app bidding solutions by using open-source solutions.Doing it this way ensures they will have maximum transparency,control,and flexibility.However,it is important to take into account the amount of resources a
89、nd energy required to create and maintain such a solution in-house.6In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights ReservedWe are always trying to innovate and find a better way to achieve our goals.Of course,technologies developed for in-app ads a
90、re still evolving and in-app bidding is just a step in the mobile ad industrys evolutionary process.However,the widespread adoption of in-app bidding is of vital importance to the growth of the entire mobile ad industry.Will in-app bidding be widely adopted across the entire industry by the end of 2
91、020?Well just have to wait and see.But in any case,the era of in-app bidding has come.Are you ready?16.The In-App Bidding Era Has Come.Are You Ready?Are you ready to increase your ad revenues with in-app bidding?Contact us todayIn-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright
92、 2020 Mintegral All Rights ReservedAbout Mintegral:Incubated in 2015 and then becoming a product brand in September 2016,Mintegral began operating independently in early 2018,providing user acquisition,monetization,and creative solutions for mobile app publishers worldwide.As a global mobile adverti
93、sing platform,Mintegral is dedicated to bridging the gap between East and West by helping app publishers build a successful business on a truly global scale.Mintegral was featured in AppsFlyer Performance Index Edition X,placing 6th on the Global Performance Index,7th on the Global Gaming Performanc
94、e Index and 2nd on the Global Growth Index.Mintegral has 10 offices around the world and more than 200 employees,50%of which work in R&D.Contact us:If you are a publisher/developer:If you are an advertiser:17In-App Bidding,The Secret to Boosting Your Monetization in 2020Copyright 2020 Mintegral All Rights Reserved