Bid Stream

What is Bidstream Data?

All the data passed with a bid request is called bidstream data. It originates from the publisher’s website or app with basic details related to ad units like URL, device type, IP address, and ad format. None of the users’ PII (Personally Identifiable Information) is exchanged using bidstream.

Even if the advertiser doesn’t win the impression, the bidstream data will remain stored until deleted manually.

For targeting purpose, a publisher is likely to share the following data with advertisers in the form of bid request:

• Location (IP address, ZIP code)

• Device (type , model, screen size, CPU speed, OS, connection)

• Ad related data (publisher’s URL, ad unit size and format)

How can Bidstream Data be Used?

For advertisers, this is the easiest type of data to get from publishers. Consequently, buy-side uses this data to run personalized ads.

In that way it gives us a good sense of how efficient we can be for bidding in areas where there’s true scarcity.

Max Jaffe, GroupM’s programmatic practice lead

Using bidstream data, publishers are able to segment their audience for advertisers to analyze and better target them. Basically, the segmented and repackaged audience created by publishers is collected in the form of bidstream data on advertiser’s end. With well-defined segmentation, publishers have a better chance of selling their inventory to the highest bidder in exchange for better CTR and conversion.

Will it Work Without Third-party Cookies?

Yes, it will and can provide a possible solution to cookie blocking. Here is how.

New technology uses bidstream data in a way that circumvents the need to sync cookies with DSPs. Companies like LiveRamp, Epsilon, and Experian have deterministic IDs that use bidstream data to minimize use of third-party cookies.

On the other hand, publishers always have the right to use contextual targeting—targeting ads based on content. If a publisher uses contextual targeting and sends it in form of bidstream data, there shouldn’t be any concern related to cookies.

Is Bidstream Data Compliant with Privacy Standards?

This is where bidstream data faces a slippery slope.

As we have discussed before, bidstream data doesn’t take users’ PII values, saving it from scrutiny by most privacy laws (GDPR, CCPA, and more).

However, publishers should have user’s consent to show targeted ads. If this is not the case, then the publisher would be penalized. 71% US users understand why publishers must show ads for monetization purposes. But how many of these users would give consent to actually see ads?

Next, advertisers get access to bidstream data, even if they lose the impression. Then chances are they would try device fingerprinting to identify devices and their users. Many browsers like Safari and FireFox are against this practice and believe it invades user’s privacy.

What is the Future of Bidstream Data?

OpenRTB 3.0, released in November 2018, is a new framework for real-time auctions. And it offers some much needed upgrades to bidstream data.

The OpenRTB 3.0 bidstream also includes an open field for identity signals, which is used mainly for cookies and cookie-based IDs, but is designed to be flexible if new ID products gain adoption.

Richter, one of the leaders of the IAB’s OpenRTB working group

This could mean that bidstream data can still stand its ground in a world without third-party cookies.

Bid Stream Pitfalls

For a media buyer in an open marketplace (buying impressions via open auctions), bid stream data is necessary to bid and buy impressions. When it comes to PMPs or guaranteed deals, buyers can bid based on the flag (deal ids), the same isn’t possible for open auctions. Though bid stream plays a significant role in programmatic auctions, it has its drawbacks.

a. Lack of accuracy:

Advertisers use to pay more for location data of a user and it is one of the most vulnerable and manipulated data. According to a report by Forensiq, 80% of the location data from the bid stream were inaccurate in 2018.

b. Unconsented use cases:

Also, some DSPs, DMPs or data providers take advantage of bid stream data to create their identity graphs that are prohibited to do without publishers’ consent.

c. Declaration Fraud:

Apparently, buyers rely on the information sent by the sellers and exchanges to bid. There are instances where exchanges unintentionally sent misleading information about the ad unit size to lure buyers to bid higher ad prices. Bid stream data can be manipulated by anyone from the sell-side of the bidding process, be it SSP or an exchange/network. As a publisher, it’s always better to keep an eye on the bid requests and cross-verify it with the specifications/page context.

c. Siphoning IDs

A malicious DSP or data provider can extract audience information from the bid stream and then find the same segment of the audience on cheaper web properties. This is yet another reason to continually optimize your ad stack and check the performance of bidder partners.

Bid Stream has several vulnerabilities. If not taken carefully, they can diminish the publishers’ revenue as well as advertisers’ ROI. To prevent such fraud activities, publishers are recommended to have ads.txt that lists down the sellers or other adtech partners they are working with, assuring the advertisers brand safety. Resellers can be added to the ads.txt file if they provide value.

What’s Next?

The key is to understand what data to include in the bid requests and with whom to share without violating users’ privacy. And, it’s important to update your wrapper, RTB protocol, video player, etc. to ensure you are not allowing fraudsters to use any loopholes from the older versions. Have any more questions about the bid stream? Let us know in the comments.

Reference

https://www.adpushup.com/blog/what-is-bidstream-data/