Which Is Header Bidding – Pros and Cons

More than 70% of publishers use header bidding to spice up eCPMs, increase fill rates, and maximize revenues. While client-side header bidding is an overall improvement over the waterfall, there are a couple of drawbacks. to deal with these issues, a replacement technology emerged: server-side header bidding. Both are often implemented by a publisher, but which most closely fits your monetization strategy?

Client-side header bidding, a primer

Client-side header bidding may be a real-time competition between several demand sources that maximizes the amount of demand partners bidding simultaneously on a publisher’s inventory. the method requires a wrapper that goes into an internet page’s header, and therefore the publisher gets to pick what percentage demand sources to plug into the wrapper. Appnexus developed is own open-source wrapper, prebid.js.

Why Publishers Like It

Publishers love it because they sell more at a better price. this is often accomplished through a couple of different layers:

  • Header Demand buys some inventory (which otherwise would are unsold or sold at a lower price)
  • The header bid acts as a floor in AdX (or their primary exchange), making AdX work harder to win the auction via DFP’s Dynamic Allocation — indeed in most cases we are seeing publishers increase eCPM by 15%~25% while maintaining an equivalent fill rate. Certainly a win for the programmatic yield manager!
  • Decreases passbacks.

Why Publishers Use It

As many of you recognize, media sellers are willing to undertake anything within the effort to eke out more programmatic revenue. In today’s complex programmatic environment, yield management is both dynamic and confusing. Header bidding as an idea is straightforward to grasp and therefore the demand is coming more directly — enabling publishers to urge obviate the quality exchange ‘waterfall’ and passback— a cause for several debates and discrepancies. However, header bidding allows other exchanges and demand sources to compete with Ad X and keep fill rate — keeping Google honest and elevating competition.

Pros of Header Bidding

Eliminate pass backs – With a header bidding integration, pass backs are not any longer required since demand sources will only win an impact with the very best bid.

Flatten your waterfall – The outdated concept of a waterfall is not any longer necessary since all demand sources are bidding during a unified auction.

Reduce discrepancies – By flattening the waterfall and removing pass backs, publishers’ ad tech stack is more efficient.

Better yield management – Yield management not must be a game. All demand sources can compete on an equivalent playing field, driving up competition.

Increase revenue –With the flattening of the waterfall, increased competition, and unified auctions, publishers make more revenue.

Publishers save on the ad serving fees paid on pass backs, monetize inventory lost to discrepancies, and earn the very best bids for his or her inventory.

Cons of Header Bidding

Latency / Longer Page Load – Header bidding requires publishers to put JavaScript into the header of their page. This script is named before the publisher’s ad server and has the potential to delay page load and delay the ad server.

Development Resources – Header bidding requires a talented development team, also as a savvy programmatic ops team.

Potential for Discrepancies – The longer page load time has been known to make unforeseen ad serving discrepancies.

Header Bidding Demand Sources/Technology

Here are the demand sources we’ve identified that have efficient header bidding technology:

  •      Index Exchange
  •      AppNexus
  •      Sonobi
  •      OpenX
  •      Rubicon
  •      PubMatic
  •      Amazon (A9)
  •      Criteo
  •      Yieldbot
  •      Sovrn

There are different techniques we used solution for heading bidding. We tried to explain it better. Let us know what you think in the comments section.

Atif Mallo

Atif Mallo is a freelance blogger with huge interest in technology, science, life hacks and health. He loves coffee, cheesecake and chess. Drop a line in comments to leave feedback for him.

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