What is Header Bidding?

Header bidding is a much domestic and improved tech combination between Publisher, tech companies, and revenue partners.

Header bidding is a progressive programmatic technique. It is also known as pre-bidding wherein publishers offer inventory to several ad exchanges instantaneously before making demands to their ad servers. The idea is that by approving several demand sources to bid on the same inventory at the same time, publishers rise their profit and make more money.

Header bidding is a process of integrating demand partners, ad exchanges, supply-side platforms and ad networks.

What is the overview of header bidding? Why waterfall became header bidding?

The concept of header bidding wasn’t always called header bidding. For years, marketer pushed their terminology.

Earlier header bidding, the one method to make the extreme of publishers’ non-guaranteed inventory was by scenery up a composite chain of partners to compete in a consecutive waterfall in the ad server.

In a waterfall setup, impressions pass away first to direct deals, then to private marketplace deals. After those confident deals established the impressions they wanted, Ad Exchange and the top partner in waterfall setup had the first blow at bidding on available impressions.

From here, remaining partners fell into stages in the waterfall and only got to bid on an impression if the stages above them had passed on it. In this scenario, many networks were unable to compete for inventory even if they were willing to pay more for it simply because they never had the opportunity.

Header bidding is now available. Advertisers can bid on premium inventory not normally available in waterfall auctions. Publishers have larger control of inventory, agreeing with them to sell on a per-impression basis, which maximizes the yield of under-monetized impressions through direct competition between buyers.

What are the types of header bidding?

The implementation of Header Bidding on your websites, there are two types of implementation that you should think about it.

Publishers using header bidding have used client or server-side header bidding.

1. Client-side header bidding.

The Client-side Header Bidding, the sale materialises on the user’s browser. The Ad call drives from the browser to SSP’s, and then to the DSP’s.

  • The Client-side header bidding is Not all browsers support scripts; therefore, users might experience errors if no substitutions have been provided this is the main disadvantage of client-side header bidding.
2. Server-Side header bidding

Server-side Header Bidding is planned to improve client-side Header Bidding by fast-tracking auction and attractive the user experience. With Server-side Header Bidding, you will be able to add more partners to the auction without having a lower latency.

  • The server-side Header Bidding, the auction happens on the server, being the load times slower,
  • Server-side header bidding improves possible, scalability, and auction reason topics seen in client header bidding by moving communication with exchanges away from the browser and into servers.
How does header bidding work?

Header bidding depends on a piece of JavaScript in the publisher’s header tag that enables buyers to bid while the rest of the page content loads. When a user visits a web page, the header tag joins the user to multiple ad networks like exchanges, SSPs, DSPs. The ad networks place their bids, and the endearing bid is returned to the user, who passes the bid to the publisher’s ad server. The publisher’s ad server then forwards the user to the advertiser’s server, which returns the final creative. All of this happens within a few fractions of a second.

With header bidding, publishers have the competence to choose which partners they want to integrate. This group of chosen associates is combined into a single request that receives bids from partners instantaneously when an impression occurs.

Here header bidding should remove the need for pass backs. In a waterfall, the quality of data passed is likely lower. You might be served into a double iframe. You might find the referrer comes back as an ad server domain rather than the site domain.

What is the importance of Header Bidding?

Header bidding is seen as beneficial to publishers and advertisers.

The uses of header bidding to Publisher:

The main benefit that header bidding offers to publishers is more profit.

  • The publisher will sell inventory on an each-impression basis, open-handed them more clear-cut into how much their impressions are worth.
  • Publishers can receive bids from buyers that may be more interested in their inventory and willing to pay a higher price than the buyers connected to the publisher’s ad server.
  • The higher the chances are of filling all types of available inventory, including both premium and unsold inventory.
  • Overall, it allows for more control and more bid transparency for reporting and optimisation.
  • Header bidding should remove the need for pass backs.
  • Improved yield management and revenue growth
The uses of header bidding to Advertiser:

The advertisers can see the accessible inventory and bid on it if it’s considered premium. As all bids are looked at before a sale, if the advertiser bids a high amount, they have a good chance of winning the bid and displaying their ad to their desired audience.

Advertisers have more and improved access to ad inventory with header bidding. Access to inventory is heightened with header bidding because of tag constructed groupings often incomprehensible how much inventory is out there to programmatic buyers because they can’t see what publishers are using to fill their directly sold business. Header tag incorporations generate bid requests for every impression available, giving buyers, a much better picture of what ad space is available.

What is the future importance of Header Bidding?

Header bidding is an advanced, collective auction directed by publishers outside of their primary ad server, which allows advertisers to choose impressions at the highest priority.

For most publishers, header bidding is a good solution as it requires less conservation and increases overall advertising revenue. We get the benefits of increased CPM from true bid auction and low latency.

Header bidding was nearly completely used for selling web display inventory. But now, knowledge advances are making it thinkable to bring header bidding to the mobile app, video, and native environments.