Why is header bidding becoming a hot topic? What should we know about it? Who are benefited by head bidding – the publisher of the advertiser?
Header Bidding is being adopted by supply side platforms. In this technique, the publishers who have the inventory offer it to multiple buyers. Whenever an impression is available, it collects multiple bids from various demand sources.
Table of Contents
Introduction to Header Bidding
Header bidding is a strategy that helps the publishers to get more revenue. Before making a call to the ad server, the publisher offers the inventory to many demand sources. Header bidding is a trading tool which automatically offers inventory to demand sources before calling as a server, it is defined.
How is header bidding different from the traditional programmatic environment?
In a traditional environment, there was limited buyer access as per order or preference and terms of the ad server. But in header bidding, the inventory is available not to limited sources but all demand sources. This increases competition and the best bid is sent to the ad server. The buyers, on the other hand, can see the inventory and choose their desired impressions.
Header Bidding Vs RTB
Header bidding is very advantageous for the publishers as their revenue is maximized and the opportunities to democratize ad server access are also created.
Header Bidding Vs DFP
DFP is double click for publishers, advertisement software run by Google. Header bidding was created for the publishers to have more control on impressions sold. Publishers were aware of the value of bidding for the inventory and how much the demand sources are willing to pay for the impressions. However, there were some negative issues with header bidding for both buyers and the publishers such as publishers running multiple auctions for an impression that increases CPMs.
Google recently updated their DFP, double click for publishers and there seems to be no need of header bidding now. Ad tech companies and other demand side platforms need not pay ADX tax now but can access more ad inventory. The demand sources can now bit against direct sold inventory. Google DFP clients can also use the ‘First Look’ tool that allows publishers to give the ad buyers the chance to bid on inventory. ‘First look’ tool was earlier offered to the only group of publishers.
Benefits of Header Bidding for Publishers
Header bidding is a technique that increases the revenue of the publisher. The main benefits of header bidding for publishers are as follows.
• The buyers who place the bids for the inventory might be interested in the inventory that the publisher has and are ready to pay a higher price.
• The chances for the publisher to fill unsold and premium inventory as more buyers are now available for them.
• Another benefit is that the publisher can know the actual worth of his inventory. He may set the lowest price for the inventory but header bidding helps to sell it for more CPM.