Header Bidding became one of the trending topics in 2016 and now we expect it to reach even bigger heights. It is an auction tool which is used to increase ad inventory , allowing publishers to offer their inventory and headers of their webpages to various ad exchanges simultaneously. That way, demand sources, all DSPs, marketers and agencies can bid simultaneously and in real time for the same inventory seeing publishers capitalise upon this and maximise revenue.
Previously the waterfall approach was favoured, where ad exchanges would compete for one space – the coveted page header. Header bidding however, is much fairer, and takes the highest bid across all buyers. Partners have priority access to their inventory and increase the final bid for the publisher. With more players in the mix as well as competition increasing, publishers see a huge increase in their CPMs with Header Bidding. Ads appearing in the header are usually the first in attracting a user’s attention.
The benefits of Header Bidding
For one, it gives publishers access to an abundance of available ads, allowing them to also obtain a better price for their ad spaces. As well as this, inefficiencies are less common and ad return decreases (when no one buys an impression because the price is too high or because there are no ads available).
Furthermore, it reduces Google’s monopoly – many publishers use Ad Server DoubleClick and this favours the exchange of ads with their own Ad Exchange. For brands, it’s rather useful because they have access to bid on all available inventories and can impact their audience with more precision and at a better price for the target their chasing.
The future of Header Bidding
Undoubtedly, any fine model will be faced with criticism and Header Bidding has certainly experienced a few. Many have claimed that the model experiences problems with latency, causing pages to load slower due to the multiple processes it has to manage at the one time. However, it is unquestionable that the model has moved on and evolved from the original. What is certain, is that it will continue to improve, which is why we must keep a close eye in the coming months and years.
Recently, there have been arguments suggesting that the model will move to a more server-to-server realm. However, this claim is largely unsupported. The future surrounding server-to-server bidding is very unclear. It still isn’t a widely adopted model nor is there much evidence to suggest that it works. We still haven’t seen data showing that a publisher will be able to increase their revenue by solely betting on a server-side solution for their header-bidding needs. As well as this, in order for server-to-server bidding to function, tech vendors would have to discuss integrating with one another’s technology, something which seems a long way off. For now, Header Bidding will only continue to improve with some companies even implementing it within the mobile app ecosystem. The model is bound to stick around and develop itself from the model it once was.
Header Bidding with Us
At mobusi, we are always at the forefront of technology and are intent on staying ahead of the game. Through the Header Bidding process, we are able to use our own DSP – created by our own In-House technology. We’re able to integrate with a wide range of ad exchanges and SSPs, contributing to not only to Header Bidding but also the RTB process. So, if you’re interested in maximising your revenue, get in touch with our team for more details!