Pre-Bid vs. Post-Bid in Programmatic Advertising: A Detailed Guide

Programmatic advertising has revolutionized how ads are bought and sold, making the process faster, more efficient, and data-driven. But navigating this complex ecosystem requires a deep understanding of key concepts—especially pre-bid and post-bid strategies. These terms describe critical stages in the bidding and optimization process, and mastering them is essential for both publishers and advertisers aiming to maximize their results.

In this article, we’ll break down the nuances of pre-bid and post-bid, explaining how they work, their roles in the programmatic advertising process, and their impact on campaign success.

What Is Pre-Bid?

Definition: Pre-bid refers to everything that happens before an ad impression is sold. During this phase, advertisers compete for ad inventory through real-time bidding (RTB) auctions. The goal is to secure the impression at the most efficient cost while targeting the right audience.

How It Works:

1. Advertiser Bidding: Advertisers decide how much to bid for an impression based on user data, targeting criteria (e.g., location, demographics, interests), and campaign objectives. Advanced algorithms are often used to predict the potential value of the impression.
2. SSP Involvement: Supply-side platforms (SSPs) play a vital role by managing auctions and sending bids to the ad server.
3. Ad Server Evaluation: The ad server collects bids from multiple SSPs and selects the highest bid (or the most relevant one, depending on publisher preferences).

Why Pre-Bid Matters:

• For Advertisers: Pre-bid allows advertisers to focus their spend on impressions that align with their campaign goals.
• For Publishers: It creates competition among advertisers, helping publishers secure the highest possible revenue for their inventory.
• What Is Post-Bid?

Definition: Post-bid refers to the activities that take place after an ad impression has been sold and delivered to the user. This stage focuses on analyzing the performance of the ad to inform future strategies.

How It Works:

1. Performance Metrics: Advertisers measure how well the ad performed using KPIs such as clicks, impressions, conversions, and return on investment (ROI).
2. Optimization: Data collected during the post-bid phase helps advertisers refine their future bidding strategies and optimize campaigns to improve effectiveness.
3. Publisher Insights: Publishers can use post-bid data to understand what types of ads perform best on their platform, helping them refine their inventory strategies.

Why Post-Bid Matters:

• For Advertisers: Post-bid analysis ensures that campaigns remain data-driven, allowing for continuous improvement.
• For Publishers: Understanding performance metrics can guide inventory decisions, ultimately increasing the value of their ad space.

Ad Server’s Role: Pre-Bid vs. Post-Bid

Ad servers are central to both pre-bid and post-bid processes, serving different functions at each stage:

When Does an Ad Server Call SSPs?

An ad server interacts with SSPs in two ways, depending on the bidding stage:

1- Pre-SSP Bids:

• The ad server requests bids from multiple SSPs before an impression is served.
• This ensures publishers maximize their earnings by selecting the highest bid among multiple advertisers.

2-Post-SSP Bids:

• After an ad impression has been served, the ad server gathers data about the ad's performance.
• This data provides insights into metrics like user engagement, click-through rates (CTR), and conversions, helping guide future strategies.

Key Differences Between Pre-Bid and Post-Bid

Why Should You Care About Pre-Bid and Post-Bid?

For Publishers:

• Revenue Maximization: Pre-bid allows publishers to extract the highest value for their inventory.
• Insight-Driven Decisions: Post-bid helps publishers identify trends and improve their ad offerings.

For Advertisers:

• Efficient Spend: Pre-bid ensures ad dollars are spent on high-value impressions.
• Continuous Improvement: Post-bid data allows for smarter, more effective campaigns in the future.

Understanding these two stages is crucial for navigating the programmatic ecosystem and staying competitive in an increasingly data-driven market.

In programmatic advertising, pre-bid and post-bid represent two sides of the same coin—one focuses on securing ad placements, while the other emphasizes analyzing and optimizing them. Together, they form a feedback loop that enables publishers and advertisers to continuously improve their strategies, maximize ROI, and drive better results.

At Lupon Media, we specialize in empowering publishers and advertisers with the tools and strategies needed to thrive in programmatic advertising. Whether you’re looking to improve your pre-bid tactics or leverage post-bid insights, we’re here to help.

Ready to unlock your full programmatic potential? Contact Lupon Media today!