IX Bid Translation for Buyers

Index Exchange (IX) offers buyers an optional Bid Translation service to help their bidding strategy adapt to a first-price auction. The feature provides buyers some bid reduction (CPM), while delivering the most optimal win rate possible.

How it Works

IX first receives all eligible bids, runs an auction, and determines a winner in our first-price auction. If the winning buyer is enabled for Bid Translation, we may reduce their bid to a lower CPM that still has potential to win the auction in the publisher’s ad server. The price points we use to reduce bids include:

  • Nearest calculated optimal bid point(s) (To learn more, see What are Optimal Bid Points)
  • Nearest publisher's floor(s)
  • Nearest competitive bid(s) within IX

Note

Bid Translation never increases a bid price.

For example, if a buyer’s winning bid is $10.00 and the nearest optimal bid point where the highest win rate is at $8.00, Bid Translation could lower the winning bid’s clear price to $8.00.

Notes

Price reduction is not guaranteed.
IX Bid Translation does not apply to private marketplace deal bids.

What are Optimal Bid Points?

Optimal bid points are CPM points computed based on historical bid rates, win rates, and CPMs of IX bids across subsets of inventory where a buyer is likely to win impressions against similar bids in other marketplaces. We use these points in Bid Translation as they may offer the biggest CPM savings with the lowest impact on win rate.

For example, we may notice bids have the highest marginal win rates at $1.00, $3.30, and $4.15 on a specific domain. We would use these marginal win rates as bid reduction points for a $5.00 bid that’s enabled for Bid Translation. If there are no other bids or floors present, we’ll reduce the winning IX bid at or near $4.15 and send this price to the publisher’s ad server.

Note

Bid Translation only uses exchange bid data to set optimal bid points.

Configuring Bid Translation for Select Bids

DSPs can control which bids should use the Bid Translation service by passing the use_bid_translation_service field in the bid response. Please advise your IX Representative if you'd like to pass this field.

use_bid_translation_service details:

  • Location: bidResponse.seatbid.bid.ext
  • Field: use_bid_translation_service
  • Type: Integer; optional
  • Description: Indicates if buyer wants to turn on/off Bid Translation service for the associated bid
    • 0 = Bid Translation not applied to bid
    • 1 = Bid Translation applied to bid

Note

If use_bid_translation_service is not passed in the bid response or an invalid value is passed in this field, the auction will revert to the default configuration for your bidder or buyer seat.