Determining impression cost

Real-Time Bidding technology lets you buy and sell impressions via a real-time auction. The RTB method automatically picks the most profitable offer, maximizing your revenue.

Determining impression cost in RTB units

In the RTB auction, the sellers are the Yandex Advertising Network platforms where RTB units are placed. Demand Side Platforms (DSPs) represent advertisers and act as buyers in the auction. The auction is held in real time:

  1. The platform sends a request for impression to the RTB system.
  2. The RTB system informs all DSPs about this request and accepts their bids.
  3. Bids made by the DSP are sorted by price in descending order and the bid with the highest impression cost is selected. The final CPM is determined by the First-Price auction: the winner pays the CPM they specified.
Ad platforms can affect the impression cost through strategies. If you set a minimum CPM floor, the RTB system will take it into account when determining the winner:
  • If the auction involved multiple bids that exceeded the minimum CPM floor, the highest bid wins the auction and becomes the final CPM.
  • If only one bid exceeds the minimum CPM floor in the auction, it becomes the final CPM.
  • If no bid exceeds the minimum CPM floor, then no DSP wins. In this case, the block will be empty (unless it has its own ad code).
Note. The impression cost determined by the auction is not equal to the remuneration amount the platform receives if this impression is counted as viewable. To learn more about how remuneration for viewable impressions is calculated, see Documents and payments.

How the ad format affects revenue from the block

The revenue of the platform depends on its conversion rate, that is, the visitors who react to ads on your site and perform a target action, for example, clicks through to the advertiser's site. Advertisers are willing to pay more for impressions on sites with a high conversion rate.

To increase the conversion rate, you need to select a format that will attract the user's attention to the ad.

Design auction is a tool that lets you configure several different formats and setting/design options for ads in an RTB unit:

When an ad is served, Yandex machine learning algorithms identify the format that's most likely to convert a particular site user. The algorithms account for many factors. Here are some of them:

  • Ad subject.
  • User device type.
  • Screen resolution.

Design auction lets you select the formats that can potentially produce the most revenue.

How to add multiple formats to one block

On the page with the list of units, click Edit next to the block and go to the Advertising formats tab. Click Add format and set up the design. We recommend that you start experimenting with the most important settings, such as the maximum number of ads and the ad unit formats.

The changes take effect automatically (without reinstalling the code on the site) within 30 minutes after saving. The optimal number of formats per experiment is 6 or 7. Algorithm training takes 2 weeks on average, but too many formats or low traffic on the ad platform may extend this period.

How to analyze indicators

The indicators on the format card will help you choose the most profitable design options.

  • Auction: Percentage of cases when the design won the auction.
  • CPM increase shows how much more revenue the winning design made produced compared to the nearest competitor design.

The indicator values will start changing as soon as impressions begin. To get more reliable data, start tracking the values of indicators in 2 weeks after the auction launches. To view statistics, open the design card menu and click Statistics.

Tip. You can delete the formats with low indicators to avoid spending traffic on them.

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