Bid Shading

Bid Shading is a programmatic technique that allows advertisers to avoid overpaying in first-price auctions. It uses machine learning algorithms to predict the optimal bid price—high enough to win the auction but lower than the full bid amount.

Before bid shading, advertisers often paid more than necessary when switching from second-price to first-price models. Bid shading analyzes historical data such as clearing prices, placement performance, and competition levels to recommend the most efficient bid.

This practice benefits advertisers by lowering average CPMs while preserving win rates. It is now a standard feature in most demand-side platforms, ensuring fair pricing in an increasingly competitive RTB environment.

Similar content from our blog

AI, AGE VERIFICATION, AND KEY TRENDS FOR 2026

Despite being a large ad network, TwinRed doesn’t suffer from the same...

Read More

OPTIMIZING OUR WEBSITE FOR SEO AND GEO

Great news, everyone, our website got yet another update, right before 2025...

Read More

SKILLS THAT MAKE A MEDIA BUYER GOOD

Affiliate marketing isn’t easy money — but it could be big money...

Read More

TWINRED 2.0: HIGH-TECH NETWORK FOR YOU

Our updated ad network and ad exchange is here: advantages of TwinRed...

Read More

SUMMARY OF TES 2025: ONE STEP CLOSER TO YOUR HEART

Back in September, we attended one of the biggest events of the...

Read More

BALANCING USER EXPERIENCE AND AD REVENUES

To be a webmaster comes with a huge responsibility. After all, there...

Read More

This website uses cookies to improve usability. Here you can find our Privacy Policy. By clicking on the ACCEPT button, you agree.