The actual value of bid enrichment lies not only in transmitting additional user information but also in increasing data density by offering any information potential buyers might require. As such, maximizing the number of IDs and signals to cater to multiple demand partners is becoming increasingly vital for publishers and technology providers. The monetary value of bid enrichment varies significantly; a recent case study reported: “that by leveraging an ID, UK publishers can expect to increase average win CPM by up to 406%, increase bid density by up to 1091% and decrease the percentage of no bids by up to -17%.” However, our experience is much more modest.
Publishers working with GrowthCode can manage an A/B test of impression, including or excluding bid enrichment using our Prebid modules for RTD and Analytics (links) We see publishers 7%~15% uplift in eCPMs for programmatic impressions. The variation is dependent on site traffic but more closely linked to tuning the bid enrichment process for each demand partner.
Its worth mentioning that while other vendors are offering black-box bid decoration services in, they do so without transparency (link) and take 50% of all uplift they deliver. With GrowthCode’s publisher-friendly infrastructure model, publishers keep 100% of the uplift and simultaneously build their own first party ID asset that can be used for other monetization activities (Link)
While bid enrichment offers notable advantages, it raises new challenges and complexities. Below is an outline to help all stakeholders understand key terminology and techniques involved in the process:
As the landscape evolves with numerous Universal IDs (UIDs) and Extended IDs (EIDs) replacing third-party cookies, distinguishing between legitimate ID Bridging and malicious ID Stuffing has become increasingly difficult for publishers. Here's why:
To navigate these challenges, publishers should take proactive steps:
Bid enrichment has become a critical tool for maximizing ad revenue and improving targeting in today’s evolving adtech landscape. As the industry moves away from third-party cookies and embraces first-party data and Universal IDs (UIDs), publishers stand to gain significantly from bid enrichment strategies. However, they must also navigate challenges such as data accuracy, transparency, and potential issues like ID stuffing.
For publishers, ensuring proper bid enrichment means working closely with technology partners to optimize signal building and delivery, embrace transparency, and carefully manage the use of Universal IDs. By doing so, they can increase CPMs, improve addressability, and build a sustainable monetization strategy that aligns with the shifting landscape of digital advertising.
At the same time, understanding the risks associated with malicious practices like ID stuffing and taking proactive steps to mitigate them is essential for maintaining trust and long-term success in the ecosystem. Publishers who invest in transparency, demand accountability from their vendors, and stay informed about industry best practices will be well-positioned to thrive in the post-cookie era.