Bid Shading Is Covering for Inefficient Programmatic Algorithms

But machine learning can help

As programmatic advertising has increasingly become the norm for brands, both SSPs and DSPs have added more tools for helping marketers price bids. Recently, bid shading has become a popular method for helping marketers save money by setting bid prices in first-price auctions. What bid shading does is use an algorithm to automatically tweak the marketers’ bid price lower based on historical data that considers exchange, the size of the ad and the site that the ad would be featured on, etc.