Header Bidding
Header bidding, also known as advanced bidding or pre-bidding, is a programmatic method for selling advertising space in real-time. It allows publishers to auction their inventory to multiple ad exchanges simultaneously, maximizing revenue potential. Unlike traditional methods, where ad space is sold at fixed prices, header bidding enables ad networks to compete in an auction, ensuring higher yields for publishers. Additionally, advertisers benefit from accessing impression data to optimize future campaigns.
Previously, the waterfall method was used, ranking ad exchanges by historic yield and offering inventory sequentially. However, this method had inefficiencies, including overlooking higher-paying ad exchanges and causing latency. In contrast, header bidding conducts real-time auctions, eliminating these inefficiencies and maximizing yield.
Header bidding differs from real-time bidding (RTB) in that it utilizes real-time bidding as an auctioning method. When a user opens a webpage, an auction is triggered, and demand partners conduct rapid auctions to establish their highest bid. In-app bidding is similar to header bidding but occurs within mobile apps.
Open bidding, such as Google's open bidding, takes place server-side rather than publisher-side, simplifying implementation. However, header bidding remains the preferred solution despite its complexity and latency issues.
In summary, header bidding revolutionizes the sale of advertising space, offering publishers increased revenue potential and advertisers access to optimized impression data.