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

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

PRE-ROLLS IN THE LIMELIGHT: FROM SKIP TO CLICK

Pre-Rolls have become more popular than ever this year; this ad format...

Read More

HOW AI CHANGES THE ADULT INDUSTRY

Artificial Intelligence is nothing short of hype now, whether it’s finances or...

Read More

HOW TO APPROACH CAM OFFERS AS A MEDIA BUYER

The adult vertical is bountiful. However, the cams stand out from having...

Read More

HEAVY ADS ARE BAD: HOW TO DEAL WITH THEM

Most of the excesses are undesirable, and heavy ads are no exception....

Read More

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