Header bidding picked up steam in 2015 and soon became publishers’ go-to ad serving method to maximize their ad revenue. The rate at which it is being implemented reveals how effective it is at increasing income.
Though it is an excellent way to earn revenue for publishers and get better quality ad spaces for advertisers, many publishers and advertisers still don’t know how it works. They struggle to find the best header bidding solution provider to guide them through the process. That is why here is everything you should know about header bidding and how it benefits advertisers and publishers.
What is Header Bidding?
Header bidding is a programmatic strategy that allows publishers to simultaneously offer their inventory to several ad exchanges before making ad calls to their servers. It’s a real-time bidding procedure that ensures the highest bidder gets every impression.
The waterfall setup has been replaced by header bidding. The code that advertises the auction is in the header part of the publisher’s website’s HTML source code, that is how it gets its name.
How does it benefit publishers?
Equal bidding opportunities
On every impression, old waterfall ad serving setups did not give all networks/exchanges a fair chance. The SSP at the top of the cascade would have the option to buy every impression, then pass the ones they didn’t bid on down the chain to the second SSP. They would then purchase the impressions they want and pass the rest on to the third, and so on. It would prevent individuals further down the chain from purchasing impressions, even if they were willing to pay more than those ahead of them.
Header bidding requests display the impression to all bidders simultaneously, allowing each one an equal chance to see it. It ensures that every potential higher bidder has its opportunity.
The opportunity of diverse income
If you rely on a single SSP or network for all of your revenue, you’re constantly at risk of losing it. Ad serving can come to a halt due to technical or policy concerns, resulting in a drop in revenue. Diversifying your income can help you keep the money coming in.
A variation in demand also implies that prices are set through competition rather than enabling one buyer to determine their worth. If you sell every impression through a single network, the network decides how much to pay for each impression. Header bidding pits various networks and SSPs against one another, and to win the impression they must pay more for your inventory than their competitors.
Better control
Publishers have discretion over which sources are allowed to bid in the auction process. Publishers can prioritize select advertisers in addition to maintaining control over their sites, encouraging marketers to continue working with their preferred publishers.
How does it benefit advertisers?
Better transparency
Programmatic ad buyers can now see all of a publisher’s impressions, not just the ones that went unsold in the waterfall setup. Advertisers can access publisher data straight from the source and make better ad decisions. The best header bidding solution providers only partner with the reputed and trusted partners to ensure the highest professionalism while getting the best results.
Better reach and targeting
Advertisers now have a better view of the ad inventory. The number of impressions and demographics of website visitors is also included. An advertiser can more effectively work on their target approach with the use of this data. It’s also a lot easier for buyers to reach a large audience now.
Premium inventory access
Advertisers may now see more of the ad inventory. Also, included the number of impressions and demographics of website visitors. With this data, a marketer may work more successfully on their target approach. It is also much easier for purchasers to reach a broad audience these days.
There is no doubt that header bidding is a significant improvement over waterfall bidding. It is a widely used solution and delivers a higher yield for numerous publishers and advertisers.
