Google Ads yesterday has provided further details on its shift towards real-time bidding auctions for apps. This transition, announced earlier this year, is set to redefine the way app advertising operates and is intended to benefit both advertisers and publishers.

Real-time bidding (RTB) is a practice that promises to improve advertiser return on investment (ROI) by enabling more precise and dynamic ad placements. It creates incentives for advertisers to allocate more of their budget towards advertising, which, in turn, offers enhanced monetization opportunities for app publishers. This shift is expected to contribute to the overall health and sustainability of the digital advertising ecosystem.

However, Google Ads acknowledges that this transition represents a significant change, especially for publishers with complex waterfall mediation setups. To ensure a smooth and gradual transition, Google Ads has outlined a phased approach to this shift:

Hybrid Waterfalls and Bidding Ad Units

As of October 31, 2023, Google Ads will continue to respond to multiple calls within hybrid waterfalls on supported partner platforms. Publishers can facilitate this transition by incorporating a bidding ad unit into their existing mediation waterfalls, essentially creating a hybrid setup. This arrangement is designed to help publishers adapt to the changes, allowing for a more gradual transition away from multiple calls within waterfall mediation.

Phased Reduction of Multicall Requests

Over the next few weeks, Google Ads will begin to reduce its spending on multicall requests in waterfalls that do not contain a bidding ad unit. And by October 31, 2023, Google Ads will cease purchasing on multicall requests in waterfalls that lack a bidding ad unit. It's important to note that Google Ads may still participate in mediation waterfalls that make a single call to Google Ads demand, but the transition to bidding ad units is strongly encouraged.

The move to bidding ad units is expected to provide publishers with improved access to Google Ads demand and offer advertisers a more efficient and competitive media buying process compared to single calls.

Guidelines for Publishers

Google is encouraging publishers to implement a hybrid setup for all their mediation waterfalls. Once a bidding ad unit is integrated into their existing mediation waterfalls, no further action will be required on or after October 31, 2023.

Google Ads intends to gradually transition away from responding to waterfall requests in hybrid setups, with the ultimate goal of completing this transition by early 2024.

Google says it remains committed to supporting and guiding publishers through this transition, ensuring that they can fully benefit from the advantages of real-time bidding while experiencing a gradual and seamless shift in their advertising practices.