Bidstream data is an important aspect of online advertising because it provides insights into the relevance and effectiveness of targeted ads. It is linked to every bid request that publishers send to advertisers, and its importance is expected to grow in the future. Bidstream data enabled US marketers to spend $31.1 billion on location-specific advertising in 2020. This is expected to increase to $38.7 billion this year. Understanding the significance of bidstream data and its potential benefits for businesses is critical to success in the world of online advertising.
What is Bidstream Data?
Bidstream data, also known as bidstream location data, is information associated with a publisher's bid request, such as information about the website or app, ad format, visitor's device type, and IP address. This information is given to the advertiser so that they can decide whether to bid on the ad unit using real-time bidding (RTB). The lifeblood of online advertising is bidstream data, which is transferred imperceptibly just before a user accesses a web page. The online ad marketplace has shifted to ad exchanges, where publishers sell their inventory to advertisers, thanks to programmatic advertising. Publishers use a supply-side platform (SSP) to access an ad exchange and enable transactions with their advertisers, while advertisers use a demand-side platform (DSP). The value of ad space is regulated by RTB technology.
Advertisers receive bidstream data in the form of a stream, which includes information about the inventory being offered, such as the format and size of an ad unit. Technical information about the device used to access the web page is also provided, such as its screen size and IP address. Location data, such as the country code domain of the publisher, is also included. Bid requests also include information such as data on first, second, and third-party cookies.
Bidstream data is stored in a database until it is deleted, raising privacy concerns. It is important to note, however, that bid requests never include users' personally identifiable information.
How Is Bidstream Information Gathered?
Bidstream data is transferred before you access a webpage. This process happens quickly, and it involves several steps.
First, the publisher receives information about the user, such as their IP address. They also add information about the relevant ad spot. This creates a bid request, which is sent to an ad exchange. The ad exchange matches the bid request with bids from advertisers. The advertiser whose bid best matches the request wins. In this case, the advertiser is book light manufacturer Microlight. The response of the match is returned to the publisher, who then displays the ad for Microlight's latest book light to the user.
This process highlights how bidstream data can be used for contextual targeting. By taking into account the user's current context, such as the page they are visiting, advertisers can deliver more relevant ads.
Bidstream data is not limited to a user's history. It can also include information about the current page they are visiting, the device they are using, and their location. This allows advertisers to deliver more relevant ads and improve the user experience.
In some situations, focusing solely on a user's history can test privacy laws. Bidstream data, on the other hand, recognizes the fact that accurate data can be gleaned in the here-and-now. This makes it a more privacy-friendly way to target ads.
Does Bidstream Data Work Without Cookies from Third Parties?
Many advertisers are naturally concerned by Google's declaration that it will phase out third-party cookies in 2023. After all, how will they run personalised adverts for their clients and prospects if the vehicle on which they have long relied is no longer available?
But it's not all bad news. A closer examination of bidstream data reveals that advertisers will still be able to gain valuable information from customers without jeopardising privacy norms.
An individual who is looking up painting techniques on an online art blog, for instance, will have their location listed in the bidstream information the blog's SSP sends to the DSP for a number of physical art supply stores. If one of those shops is even close to the site visitor, their paintbrush advertisements will be a perfect fit.
Similar to how other data essential to bidstream data, like the device a site visitor is using, may be used to help advertisers target their ads, depending on the content they are viewing. In other words, the removal of third-party cookies won't affect a publisher's or advertiser's ability to present pertinent content.
What Can Be Done With Bidstream Data?
As we've seen, the nature of bidstream data enables marketers to focus on particular target markets. Even though such targeting may be significant, something much more fundamental underpins the utility of bidstream data.
Bidstream data successfully provides advertisers with information about the most fruitful bidding areas by recognising site visitors according to location data. Advertisers are therefore able to concentrate more intently on who they wish to target and how once they have determined where possible prospects may be.
From the standpoint of a publisher, the malleability of bidstream data—the ability to separate a given stream of data into several categories that will be useful to advertisers—is what makes it useful.
In this way, bidstream data may be utilised to upsell a publisher's ad inventory, depending on how it is parsed. Publishers can, for instance, provide ad space on websites with a particular demographic's popularity as well as users who are more likely to purchase a particular good or service—high-value audience segments.
But publishers and advertisers aren't the only parties who can benefit from bidstream data. Such information can also be used by app developers to improve the impressions they make on their target markets.
Additionally, based on technical information like the functionality of particular browsers and URLs, businesses can use bidstream data to assess the effectiveness of particular bidding areas.
Advantages of Bidstream Data for Publishers
Publishers can increase ad unit sales by providing detailed user information and inventory. Maximizing profits from data sales can be achieved by selling data to a data management platform (DMP), which organizes audience data from various sources.
Advantages of Bidstream Data for Advertisers
DSPs enable advertisers to segment users based on data from online bidding, enabling better understanding of user reactions to content and enhancing their targeting strategies.
Advantages of Bidstream Data for Users
Bidstream data increases the possibility that consumers will see adverts that are relevant to their needs and desires.
Future of Bidstream Data
The imminent phaseout of third-party cookies may not prevent advertisers from displaying relevant ads, but the location and device-specific information in bidstream data may provide a second wind in the new third-party cookieless landscape. Tools like universal ID (UID) offer publishers more control over their readers' data, allowing them to track visitors across the internet and foster contextual advertising opportunities beyond their own sites.
Updates to the Interactive Advertising Bureau's (IAB) OpenRTB standard in 2018 have made bidstream data more secure and transparent. OpenRTB 3.0 requires publishers and advertising companies to revise their code to conform to new policies on brand safety guarantees, making bidstream safer and more transparent in terms of bid requests. The new protocol also includes an open field for identity signals, designed to adapt to new ID products. Overall, the IAB's OpenRTB standard offers a promising area for bidstream data, allowing advertisers to display ads that are relevant to their audiences.
Conclusion
Bidstream data is crucial for businesses, as it helps publishers and advertisers stay competitive in the market. By ensuring compliance with bidstream data, businesses can effectively serve their users and enhance their offerings. This data can be used to complement existing products. By harnessing this data, businesses can connect with their customers and achieve success in the competitive market.
