Posted by Header Bidding is an advanced programmatic advertising technique where publishers offer inventory to multiple ad exchanges in real-time before making calls to their ad servers. This allows ad buyers to bid on inventory before it becomes available elsewhere, driving up prices and better CPMs for the publisher.
PubMatic invented header bidding in 2010. The company created a piece of code that could be placed within the publisher’s HTML header. This code allowed multiple ad networks to bid on each ad impression in real-time before the ad server was called. The highest bidder would win the auction, and their ad would be served.
This process significantly improved the traditional waterfall approach to ad selling. Publishers would work with a few select ad networks in the waterfall model. They would typically give each network a different inventory level based on how much revenue they generated. The ad networks would then sell that inventory to their advertisers in an auction. The problem with this system was that it didn’t allow for real-time bidding, so publishers were leaving money on the table.
With header bidding, all ad networks can bid on every single ad impression in real-time. This allows for a more efficient market, where the publisher can optimize their inventory to get the highest CPM possible.
Before header bidding, the programmatic landscape was quite different. Ad exchanges operated in a waterfall setup, where each one was called in sequence and given a chance to fill the ad before the next one in line was reached. This resulted in lower CPMs for publishers, as demand was spread out among multiple exchanges.
With header bidding, all ad exchanges are called simultaneously and allowed to bid on the inventory. This allows for a more efficient market, where buyers can compete directly with each other for the inventory. As a result, CPMs are often higher with header bidding than in the traditional waterfall setup.
How Header Bidding works
Header bidding works by placing a piece of code on the publisher’s website that calls out to all of the ad exchanges that the publisher is partnered with. Each exchange then has the opportunity to bid on the inventory in real-time. The highest bidder wins the ad spot, and their ad is served to the user.
Header bidding can be implemented in a few ways, but the most common is through a header bidding wrapper. A wrapper is a piece of code that manages all of the bidders and makes sure that they are all called simultaneously. This makes it much easier for publishers to manage header bidding, as they only need to deal with one piece of code.
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Benefits of Header Bidding to Publishers
There are a few key benefits that header bidding can offer publishers.
- First, it allows for a more efficient market by calling all of the exchanges simultaneously. This ensures that buyers compete directly with each other for the inventory, which often results in higher CPMs.
- Second, header bidding can help to increase overall revenue by giving more buyers access to the inventory. When using a traditional waterfall setup, only a small portion of buyers could bid on the inventory. With header bidding, all buyers have a chance to bid, resulting in more ad dollars for the publisher.
- Finally, header bidding can help to improve the user experience by reducing latency. When using a traditional waterfall setup, each exchange is called in sequence, often leading to long loading times. With header bidding, all of the exchanges are called simultaneously, which reduces latency and makes for a better user experience.
Why Publishers should enable Header Bidding on their sites
- It helps to increase overall revenue by giving more buyers access to the inventory
- It can help to improve the user experience by reducing latency
- It allows for a more efficient market by calling all of the exchanges at the same time
- It can result in higher CPMs for publishers compared to the traditional waterfall setup.
As a publisher looking to increase your programmatic revenue, then header bidding is something you should consider enabling on your site.
Challenges with Header Bidding
There are a few challenges that come with implementing header bidding.
- First, it can be challenging to manage all of the different bidders involved. This is where a header bidding wrapper can be helpful, as it handles all of the bidders for you.
- Second, header bidding can sometimes lead to increased latency, as all of the bidders are called simultaneously. This can be a significant problem for publishers, leading to a poor user experience.
- Finally, header bidding can sometimes lower CPMs for publishers if not implemented correctly. This is because buyers may not be willing to pay as much for the inventory if they know other buyers are involved in the process.
While header bidding is a great way to increase programmatic revenue, it’s essential to be aware of the challenges that come with it.
How Publishers can overcome the challenges of Header Bidding
- Publishers can use a header bidding wrapper to manage all of the different bidders involved. This makes it much easier to keep track of everything and ensures that all of the bidders are called simultaneously.
- Publishers can work to reduce latency by implementing techniques such as lazy loading and async loading. These techniques can help to improve the user experience by reducing the amount of time it takes for the page to load.
- Finally, publishers can optimize their header bidding setups to ensure that they get the best possible CPMs. This can be done by testing different configurations and monitoring the results.
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How Header Bidding helps advertisers
Header bidding helps advertisers by giving them access to more inventory and allowing them to bid on it in real-time. This can result in higher CPMs for the advertiser, as they can compete with other buyers for the inventory. In addition, header bidding can help improve the quality of the available inventory, as it is often less expensive than the inventory that is available through the traditional waterfall setup.
Overall, header bidding is an excellent way for advertisers to increase their CPMs and access better quality inventory.
Advertisers can benefit from header Bidding in the following ways.
- First, header bidding gives them access to more inventory. This is because header bidding allows multiple exchanges to be called simultaneously, which provides advertisers with more opportunities to bid on inventory.
- Second, header bidding allows for real-time bidding, resulting in higher CPMs for the advertiser. This is because the advertiser can compete with other buyers for the inventory in real-time, which can drive up the price.
- Finally, header bidding can also help improve the quality of the available inventory. This is because header bidding often results in less expensive inventory, as it is not subject to the same markups associated with the traditional waterfall setup.
How to set up header Bidding by searching the relevant demand partners
If you’re interested in setting up header bidding, the first step is to find the relevant demand partners. There are a few different ways to do this, but the easiest way is to use a header bidding wrapper. A header bidding wrapper is a software that helps manage all of the different bidders involved in the process. This makes it much easier to keep track of everything and ensures that all of the bidders are called simultaneously.
Once you’ve found the relevant demand partners, the next step is to set up the header bidding wrapper. This process will vary depending on which wrapper you’re using, but most wrappers will require you to add the bidders to the wrapper and then configure the wrapper to call the bidders simultaneously.
Once you’ve done this, you’re ready to start header bidding! Remember that you may need to optimize your setup over time to get the best possible CPMs.
Header Bidding Wrapper and How They Work
Header bidding wrappers are software pieces that help manage all of the different bidders involved in the process. This makes it much easier to keep track of everything and ensures that all of the bidders are called simultaneously.
The challenges associated with Header Bidding
There are a few challenges associated with header bidding.
- First, header bidding can be complex to set up and manage. This is because it involves adding multiple bidders to the process and then configuring the wrapper to call them all simultaneously. This can be difficult to do, and it may require some trial and error to get it right.
- Second, header bidding can sometimes result in lower CPMs for the advertiser. This is because the inventory available through header bidding is often less expensive than the inventory available through the traditional waterfall setup.
- Lastly, header bidding can also lead to increased latency. This is because the wrapper needs to call all the different bidders, which can take some time. This can be a problem for advertisers looking to run real-time campaigns.
The tips for optimizing Header Bidding
A few tips can help you optimize your header bidding setup.
- First, make sure that you’re using an optimized wrapper for your needs. There are a variety of different wrappers available, and each one has its strengths and weaknesses. You need to make sure that you’re using a wrapper that is well suited to your particular setup.
- Second, keep an eye on your CPMs and ensure that you’re getting the best possible results. If you’re not happy with your CPMs, try changing your setup or tweaking your bids.
- In conclusion, monitor your latency and adjust your setup accordingly. If you notice that your campaigns are suffering from increased latency, try changing the order of your bidders or increasing the timeout period.
What is prebid.js?
Prebid.js is an open-source header bidding solution that allows publishers to increase their CPMs by calling multiple demand sources simultaneously. Prebid.js is easy to set up and use, and it supports a wide range of ad formats, including display, video, and native ads.
How prebid.js works
Prebid.js works by calling multiple demand sources simultaneously and then selecting the best offer to display to the user. This allows publishers to increase their CPMs by accessing a more comprehensive range of inventory.
Pros of prebid.js
Prebid.js has several advantages over other header bidding solutions.
- It is easy to set up and use. This makes it an excellent option for new publishers to header bidding.
- It supports various ad formats, including display, video, and native ads. This makes it a good option for publishers who want to monetize their traffic with multiple ad types.
- It is an open-source solution, which means that the community is constantly improving it. This makes it a good option for publishers to use a reliable and up-to-date header bidding solution.
Cons of prebid.js
Prebid.js also has a few disadvantages that publishers should be aware of.
- It can sometimes result in lower CPMs for the advertiser. This is because the inventory available through prebid.js is often less expensive than the inventory available through the traditional waterfall setup.
- It can also lead to increased latency. This is because the wrapper needs to call all the different bidders, which can take some time. This can be a problem for advertisers looking to run real-time campaigns.
3 tips for optimizing prebid.js
There are a few tips that can help you optimize your prebid.js setup.
- Make sure that you’re using an optimized wrapper for your needs. There are a variety of different wrappers available, and each one has its strengths and weaknesses. You need to make sure that you’re using a wrapper that is well suited to your particular setup.
- Keep an eye on your CPMs and ensure that you’re getting the best possible results. If you’re not happy with your CPMs, try changing your setup or tweaking your bids.
- Make sure to monitor your latency and adjust your setup accordingly. If you notice that your campaigns are suffering from increased latency, try changing the order of your bidders or increasing the timeout period.
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Is Header Bidding better than AdSense?
Header bidding is a more advanced way of selling ad space on a website. Adsense is Google’s program for selling ads on websites. Header bidding allows for more competition among ad buyers and typically results in higher CPMs for the publisher. However, header bidding can also lead to increased latency, so it’s essential to monitor your campaigns carefully.
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