What is in-app bidding?

In-app bidding is a programmatic advertising method that allows mobile app publishers to auction their ad inventory in real-time to multiple advertisers simultaneously. In-app bidding enables all advertisers to compete concurrently in a unified auction, with the highest bidder securing the ad placement.

In-app bidding functions through a software development kit (SDK) integrated into the mobile app. When an ad opportunity arises, the SDK initiates an auction by sending requests to multiple demand sources, such as ad networks, demand-side platforms (DSPs), and exchanges. These partners then submit their bids based on the value they assign to that particular ad impression.

The in-app bidding process works like this:

1. An ad request is generated within the app.
2. The SDK sends this request to multiple demand sources simultaneously.
3. Interested buyers submit their bids in real-time.
4. The highest bid wins the auction.
5. The winning ad is displayed to the user.

This entire process occurs within milliseconds.

In-app bidding offers significant advantages over traditional waterfall methods. By enabling all demand sources to bid on every impression in real-time, publishers benefit from increased competition, which can drive higher cost per mille (CPM) and greater overall revenue. This democratized approach also improves inventory utilization by making premium placements accessible to a wider range of advertisers.

Automated real-time auctions reduce latency and streamline ad operations, minimizing the need for manual optimization. Transparency is another key advantage—publishers gain insights into winning bids, ensuring an open and fair marketplace, while advertisers can refine their strategies based on clear pricing data. Additionally, faster ad loading and more relevant advertisements improve the user experience.

Despite its benefits, in-app bidding adoption has been gradual due to certain challenges. Implementation can be complex, requiring technical resources and expertise, while the integration of multiple bidder SDKs may lead to "SDK bloat," potentially affecting app performance. Both publishers and advertisers also face a learning curve as they adapt to the technology and refine their strategies.

MAX by AppLovin is a leading in-app monetization platform designed to help app publishers maximize their ad revenue through advanced real-time bidding technology. By integrating with over 25 SDK networks and 20+ in-app bidders, MAX creates a highly competitive unified auction environment, ensuring publishers receive the highest possible CPM for their inventory. The platform supports various ad formats, including native, interstitial, rewarded, and banner ads, providing flexibility in monetization strategies. 

Maximize your ad revenue with AppLovin and leverage Adjust to gain comprehensive insights into user engagement across every touchpoint. Request a demo today!