BidSwitch True Price¶
True Price is a technology developed by BidSwitch to optimise the bidding strategy of a Buyer, and it is most effective when bidding at a Supplier using a first-price auction or a modified second-price auction. The technology uses machine learning to identify the optimal bid price for a given Bid Request.
Buyers that enable True Price on their account will still conduct their bidding in the usual manner through BidSwitch, except that True Price will adjust the bid price of 90% of their traffic, with 10% of traffic going untreated as a control group to test its effectiveness.
To access True Price you need to sign a contract addendum allowing BidSwitch to change your bid price. To discuss the contract addendum details, contact your Client Services representative. Once signed, it can be enabled on your account.
As it is enabled per connected Supplier, Buyers require a Minimum Trading Volume of 50,000 impressions per days with that Supplier over the previous 3 days of trading. This is due to the volume needed for the machine learning algorithms to work effectively.
Enabling True Price¶
Once the above pre-requisites are met, you can enable True Price on a per Supplier basis from your myBidSwitch UIpage. There is a number of controls/phases to go through before True Price becomes fully operational:
Waiting to Start - Once enabled, True Price waits until midnight (UTC) to start working. The current midnight restriction is due to reporting
Learning - In this phase True Price learns the best bidding strategy for this Supplier auction
Stopped - If you stop True Price it cannot be restarted until midnight. Note: You may stop True Price at any time.
True Price has not been started for this partner - You have never used it when trading with this Supplier
eCPM trading values will drop as you are lowering your Bid Price
You may see a drop in your win rate, but the maximum win rate drop is 5%. In the majority of test cases True Price has only had a negligible effect on win rates
- Validating this Impact
You can check these figures in the True Price Report, which you can download from the myBidSwitch UI using the True Price Savings column of your Media Reportbutton. You can also see the nett savings figures in the
To measure the effectiveness of True Price, it is calculated in the following manner:
90% of Yes Bids are modified by True Price and 10% are left untreated as a control group
To get the figures for how your integration with the Supplier is performing with True Price enabled, the modified and unmodified figures are calculated as if to represent 100% each, giving you a side-by-side comparison:
Untreated Traffic Figures * 10= total untreated traffic estimate
True Price Figures * 1.1111111= total treated traffic estimate
The difference between these figures represents the effectiveness of True Price, whether it be for total savings, eCPM, or win rates.