Header bidding, this has become one of the famous topics in the advertisement world for some good reason. So, today we have decided to enlighten you with the knowledge of header bidding. The first question comes; what is header bidding? So let’s start with the definition of the mentioned. Header bidding, also known as pre-bid or advanced bidding, which is a way for publishers to continuously offer ad space out to numerous SSPs or ad exchange at the same time. It also allows publishers to take more control over the whole process of an ad exchange. So, in a line, we can say that header bidding helps the publishers to earn more money by allowing multiple demand sources to bid on the same ad inventory at the same time. This process can help you in getting more customers if you can feature the ads on broadcasting platforms like YouTube.
Header bidding is the alterative of the “waterfall” method offered by Google. But it had a great issue of lower revenue. If an inventory remains unsold in the first bid, it passes automatically in a lower tire. When it passes to the lower tire, the base bid price becomes lower. The more it passes down, the more the prices become low. So, there could be someone who can give a better price, but unfortunately, he never got a chance.
How does header bidding work?
As soon as the page, containing header bidding codes, started to load within the user’s browser, the code executes and calls all demand partners like Rubicon, AppNexus, and Rubicon within the same time to bid on the impression. Then it calls an ad server for the same reason. All of the processes happen in a very short time window, sometimes within a second. The demand partners send their highest bid values which are passed from the visitor’s browser to the publisher’s ad server. All the demand sources bid at the same time, and publishers can control which source can participate in the auction. Header bidding allows the investor to increase the prices for the premium inventory. It has been seen that the average revenue of the publishers has increased by 70%with header bidding.
How header bidding help publishers?
When all the demand sources bidding at the same time, publishers can control the potential demand sources with the ability to participate in the bidding. Publishers can control over the sites and can also prioritize certain advertisements in the auction.
Spike up revenue:
The most important benefit of header bidding is that publishers can increase the prices charging for the premium inventory. Researches have shown that publishers have increased revenue by 30-50%.
The overall yield increases with less reliance on a single SSP. It happens by allowing a smarter allocation of impressions and increased fill rate.
Reduced reporting discrepancies:
Header bidding is a single, live auction that happens across multiple partners with no sequential change. This effectively reduces reporting discrepancies.
How header bidding helps advertisers?
Header bidding allows all advisers to have a great chance of winning the best inventory. It does not depend on the fact they use AdX or not. Everyone gets the same priority.
Transparency and better inventory:
It allows advertisers access to the entire publishers’ inventory. It helps them to know about availability and price. It is then easy for the publishers to bid higher if they want that premium inventory.
There are so many pros. for the header bidding. But there are few cons. also. The publisher has to work more. The latency period is increased rapidly, and the infrastructure cost is also higher. But as per our research, this header bidding is the better option than waterfall. It provides a lot of control over all kinds of data.