A Bid Request in ecommerce is a request sent to advertisers to bid for ad space in real-time.
A Bid Request is an integral function in programmatic advertising, where online publishers offer available ad space in real time to prospective advertisers. This process is facilitated through an ad exchange via Real Time Bidding (RTB). A Bid Request essentially contains key information about the user (like location, device type, cookies etc.), the publisher's website (like page URL, category etc.) and the ad impression on offer (such as dimension, format, and attributes of the ad space).
Bid Request doesn't have a specific formula as it’s a process and not a numerical metric. However, it most commonly comes into play in metrics such as 'Bid Rate' - the number of bid requests that result in a bid. Bid Rate = (Number of Successful bids / Total Bid Requests) * 100
For instance, if Amazon has an ad space available on its page and wants to sell it to the highest bidder, it sends out a bid request to advertisers. The request might detail that the ad should be mobile-compatible, geo-specific for users in New York, and suitable for a page selling electronic gadgets.
Bid Requests serve several crucial purposes in driving effective ecommerce advertising:
Improving the quality of Bid Requests majorly banks on providing detailed and accurate information. The more detailed your bid request, the higher the chances of attracting suitable and competitive bids. Incorporating accurate information about user’s browsing history, interests, demographic data, and behavior can help in increasing the bid request’s quality.
Various factors can impact the Bid Request process, including:
Bid Requests are intrinsically connected with several other ecommerce metrics. They directly impact the Click-Through Rates (CTR) and Conversion Rates, as a better-targeted ad would generally lead to higher clicks and conversions. They also influence the overall Return on Ad Spend (ROAS) by striking a balance between ad cost and expected returns.
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