Facebook adopts header bidding to make its ad network more competitive with Google’s

When an ad slot goes up for sale — which occurs for each ad slot every time a person loads a page of the publisher’s site — it doesn’t go up on the market in every single place directly. Instead the publisher checks different ad networks to see what price it can get for a given slot; here is called the “waterfall. ” If the 1st ad community matches the publisher’s favored price, the deal is refrained from another ad networks given the option to offer additional cash. Given that many publishers use Google’s ad server to source these deals, Google’s ad network usually wins out early, though Google has taken steps to open up to more outside competition.

Facebook’s entry into the header bidding world is particularly noteworthy on account of how its ad community is organized. Advertisers don’t have the opportunity to buy ads from Audience Network independently from Facebook proper, that means that they ought to be inclined to pay as much for an Audience Network slot as a slot in the Facebook news feed. So Facebook is capable of pitch publishers on the competencies for reaping similar rates to what Facebook gets, minus Facebook’s cut. Depending on how Facebook’s prices compare with the rates offered by Google and others, it might probably force its rivals to elevate their prices to remain aggressive for publishers.

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