DV360 to stop bidding on multiple waterfall calls for mobile apps

Google this month announced that Display & Video 360 will cease bidding on multiple waterfall calls to Google Ad Manager and the AdMob Network for mobile app inventory. This change, set to take effect on October 23, 2024, marks a pivotal shift towards real-time bidding (RTB) as the primary method for purchasing mobile app ad inventory.

The announcement, made on September 23, 2024, comes approximately one year after a similar transition was implemented in Google Ads. This latest development underscores Google's continued commitment to streamlining its advertising platforms and optimizing advertiser return on investment (ROI) across its ecosystem.

Real-time bidding is an automated digital advertising auction system where ad impressions are bought and sold in real-time. This process occurs in the milliseconds it takes for a webpage or app to load. RTB allows for more precise targeting and dynamic pricing, potentially benefiting both advertisers and publishers.

The shift to RTB for mobile app inventory is expected to bring several advantages:

1. Improved efficiency: RTB eliminates the need for multiple waterfall calls, reducing latency and improving the overall ad serving process.
2. Enhanced targeting: Advertisers can bid on individual impressions in real-time, allowing for more precise audience targeting.
3. Better inventory utilization: Publishers can potentially earn more revenue by exposing their inventory to a wider pool of demand partners simultaneously.
4. Increased transparency: RTB provides more visibility into the bidding process, allowing both advertisers and publishers to make more informed decisions.

The transition to RTB will have far-reaching implications for both advertisers and publishers in the mobile app ecosystem:

For Advertisers:

1. Bidding strategies: Advertisers will need to adapt their bidding strategies to align with the real-time nature of RTB auctions.
2. Data utilization: There will be an increased emphasis on leveraging first-party data and advanced analytics to inform bidding decisions.
3. Campaign optimization: Advertisers may need to adjust their campaign structures and targeting parameters to maximize performance in an RTB environment.

For Publishers:

1. Waterfall restructuring: Publishers will need to reconfigure their ad stack to accommodate the shift away from traditional waterfall setups.
2. Yield optimization: There may be a learning curve as publishers adjust to new yield optimization strategies in an RTB-dominant landscape.
3. Integration challenges: Some publishers may face technical challenges in integrating with new RTB-compatible ad serving solutions.

Timeline and Implementation

The transition to RTB for mobile app inventory in Display & Video 360 will follow this timeline:

• September 23, 2024: Announcement of the upcoming change
• October 23, 2024: Display & Video 360 stops bidding on multiple waterfall calls to Google Ad Manager and the AdMob Network

This one-month notice period is designed to give advertisers and publishers time to prepare for the transition. However, some industry observers have noted that this timeline is relatively short compared to similar changes in the past, which may pose challenges for some stakeholders.

Comparison to previous Google Ads transition

It's worth noting that this change in Display & Video 360 follows a similar transition implemented in Google Ads approximately one year ago. The Google Ads transition, which occurred in late 2023, provides some insights into what the industry might expect:

1. Initial adjustment period: Many advertisers and publishers reported a temporary dip in performance as the ecosystem adapted to the new RTB-centric approach.
2. Long-term benefits: After the initial adjustment period, many stakeholders reported improved efficiency and performance.
3. Market consolidation: The shift to RTB led to some consolidation in the ad tech industry, with smaller players struggling to adapt to the new landscape.

Key Facts

• Display & Video 360 will stop bidding on multiple waterfall calls for mobile app inventory on October 23, 2024.
• This change affects Google Ad Manager and the AdMob Network across all mediation platforms.
• The transition aims to maximize advertiser ROI and improve bidding efficiency.
• Real-time bidding (RTB) will become the primary method for buying mobile app ad inventory.
• This change follows a similar transition in Google Ads approximately one year ago.
• The announcement was made on September 23, 2024, giving stakeholders one month to prepare.
• Advertisers and publishers are advised to audit their current setups and evaluate RTB readiness.