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Header Bidding Wiki: Everything You Need to Know

Header Bidding Wiki: Everything You Need to Know
Header Bidding Wiki: Everything You Need to Know

In the ever-evolving world of online advertising, publishers are constantly searching for innovative ways to maximize revenue and improve user experience.

Enter header bidding, a game-changing technique that has revolutionized the industry.

But what exactly is header bidding?

How does it work?

And why is it so beneficial for publishers and advertisers alike?

In this article, we will delve into the world of header bidding and explore how Publift is leading the way in providing cutting-edge solutions for publishers.

So buckle up and get ready to uncover the secrets of this powerful tool that is reshaping the digital advertising landscape.

header bidding wiki

Header bidding is a programmatic advertising technique that allows publishers to bid on multiple advertising exchanges in real time.

By implementing JavaScript code on their website, publishers can generate bid requests and filter them through their ad server, displaying the highest bidder’s ad to the user.

This method has been widely adopted by US publishers, with many reporting higher CPMs and increased revenue.

Header bidding improves pricing accuracy, maximizes ad revenue, expands and diversifies advertisers, enhances ad quality, improves user experience and SEO results.

It also benefits advertisers by providing increased reach, disintermediation, and transparency.

To set up header bidding, publishers use a header bidding wrapper and configure auction time limits and floor prices.

Open Bidding is a Google product that uses server-to-server connections for improved performance.

Header bidding is considered better than AdSense as it allows for a wider range of publishers and ad exchanges to bid on inventory.

Server-side header bidding helps reduce latency by hosting the auction process in the cloud.

Overall, header bidding provides more control, transparency, and higher revenue for publishers, while also offering increased access and visibility for advertisers.

Key Points:

  • Header bidding is a programmatic advertising technique that allows publishers to bid on multiple advertising exchanges in real time.
  • Publishers can implement JavaScript code on their website to generate bid requests and filter them through their ad server, showing the highest bidder’s ad to the user.
  • US publishers have widely adopted header bidding, reporting higher CPMs and increased revenue.
  • Header bidding improves pricing accuracy, maximizes ad revenue, expands and diversifies advertisers, enhances ad quality, improves user experience and SEO results.
  • It benefits advertisers by providing increased reach, disintermediation, and transparency.
  • To set up header bidding, publishers use a header bidding wrapper and configure auction time limits and floor prices.

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? Did You Know?

1. In header bidding, the term “header” refers to the top section of a webpage where the website’s logo, menu, and other elements are typically located.

2. The concept of header bidding originated in the online advertising industry as a way for publishers to offer their ad inventory to multiple ad exchanges simultaneously.

3. Did you know that header bidding was initially called “tagless auctions” because it eliminated the need for publishers to use ad tags, making the process more streamlined?

4. One of the main benefits of header bidding is that it allows publishers to maximize their ad revenue by enabling more demand sources to compete for their inventory, leading to higher bid prices.

5. Header bidding has become increasingly popular in recent years, with many ad tech companies developing their own header bidding solutions to help publishers optimize their ad monetization strategies.

What Is Header Bidding?

Header Bidding: Revolutionizing Programmatic Advertising

Header bidding is a programmatic advertising technique that allows publishers to bid on multiple advertising exchanges in real time. By implementing JavaScript code in the <head> section of a website, publishers can generate bid requests and filter them through their ad server. The highest bidder’s ad is then displayed on the user’s screen in real time, ensuring a fair and transparent auction process for ad inventory.

Google’s Perspective

Google has internally referred to header bidding as an “existential threat” due to its increasing popularity and potential to disrupt their advertising ecosystem. Approximately 84% of the top 10,000 US sites and more than half of US publishers have implemented header bidding. Many of them have reported higher CPMs (cost per thousand impressions) as a result. This technique has gained traction as it allows for more accurate pricing and expands the pool of advertisers interested in buying impressions.

Implementation of Header Bidding

To implement header bidding, publishers need to use JavaScript to build a header bidding wrapper, which acts as a container that organizes all buyers and sets the rules for the programmatic auction. Publishers must search for relevant demand partners and install the header bidding wrapper, while also configuring the format by setting auction time limits and floor prices. Header bidding wrappers come with various settings, including a timeout feature, and provide analytic tools to determine the effectiveness of different strategies. Popular header bidding wrappers include prebid.js, Amazon’s Transparent Ad Marketplace (TAM), and Google’s Exchange Bidding in Dynamic Allocation (EDMA).

Benefits for Publishers

Header bidding offers several benefits for publishers. Firstly, it allows them to charge higher prices for their premium inventory, potentially increasing their revenue by up to 70%. By expanding and diversifying the advertisers interested in buying impressions, publishers can drive higher CPMs and revenue growth. Additionally, header bidding leads to increased ad quality, as advertisers are willing to bid higher to reach a specific publisher’s audience, resulting in more relevant and higher quality ads. Moreover, header bidding helps improve user experience and SEO results by reducing the time needed to sell an impression and render an ad on the page.

Benefits for Advertisers

Advertisers also benefit from header bidding. It provides them with increased access and reach to find their target audience. Header bidding offers disintermediation, granting all advertisers equal access to the best inventory, regardless of whether they use Google Ad Exchange. It also provides transparency, allowing programmatic ad buyers to see all of a publisher’s impressions, not just the unsold ones. By allowing advertisers to access a publisher’s entire inventory, including premium inventory that was previously only available through direct deals, header bidding enhances advertisers’ chances of getting their ads seen by their desired audience.

Setting Up Header Bidding

To set up header bidding, publishers need to follow a few key steps. Firstly, they must build a header bidding wrapper using JavaScript, which acts as a container for organizing buyers and setting auction rules. Publishers then search for relevant demand partners and install the header bidding wrapper. Additionally, configuration is required to set auction time limits and floor prices. Header bidding wrappers have various settings, including a timeout feature, and come with analytic tools to determine the most effective strategies.

Header Bidding Wrapper Options

There are several options available for header bidding wrappers. One popular choice is prebid.js, which was designed by AppNexus in 2015. This open-source solution enables publishers to manage and optimize their header bidding setups effectively. Additionally, Amazon’s Transparent Ad Marketplace (TAM) and Google’s Exchange Bidding in Dynamic Allocation (EDMA) offer alternative options for implementing header bidding.

Introduction to Open Bidding

Open Bidding, a Google product, uses server-to-server connections to decrease page latency, increase ad viewability, and maximize yield. It allows all demand partners to bid on an impression simultaneously on the ad server, rather than the user’s browser. By leveraging server-side connections, Open Bidding reduces latency and improves the user experience by moving the auction process to the cloud. Publift, in partnership with Google, has successfully brought Open Bidding to over 50 publishers in Australia and New Zealand, resulting in reduced management time, increased site speed, and a boost in revenue.

Header Bidding versus AdSense

Header bidding is considered superior to AdSense due to its ability to allow a wider range of publishers and ad exchanges to bid on inventory. While Google’s market share continues to decline, header bidding gains popularity as it drives a drop in competition among advertising partners of up to 10%. Another contributing factor is the rise of private marketplaces (PMPs), which lead to increased advertiser spending. Header bidding provides a more complex setup compared to AdSense, but it allows publishers to retain more control over their ad operations, resulting in increased revenue potential.

Comparing Setup Complexity

Header bidding requires a more complex setup compared to Open Bidding. Header bidding wrappers and demand partner configurations offer publishers increased control but involve a steeper learning curve. Open Bidding, managed by Google, provides a simpler interface and reduces latency by moving the auction process to the ad server in the cloud, freeing up resources on the user’s browser. While Open Bidding offers convenience, header bidding allows publishers to retain more control over their ad operations.

Server-Side Header Bidding

Server-side header bidding is an alternative approach that helps tackle latency issues. By hosting the auction process on an external server in the cloud, server-side header bidding reduces page latency and improves overall user experience. However, it should be noted that server-side header bidding may sacrifice some features, such as higher cookie match rates, transparency, targeted ads, and a higher fill rate compared to client-side header bidding.

In conclusion, header bidding has revolutionized programmatic advertising by providing publishers with more control, transparency, and higher revenue from their ad inventory. Advertisers also benefit from increased access and visibility to a publisher’s ad inventory. By understanding the implementation process, benefits, and available options for header bidding, publishers and advertisers can make informed decisions on how to optimize their programmatic ad strategies. Publift offers header bidding solutions for digital publishers, empowering them to maximize their revenue potential and reach their target audience effectively.

Implementation Of Header Bidding

To implement header bidding, publishers need to use JavaScript to build a header bidding wrapper. The wrapper acts as a container that organizes all buyers and sets the rules for the programmatic auction.

Publishers must:

  • Search for relevant demand partners
  • Install the header bidding wrapper
  • Configure the format by setting auction time limits and floor prices

Header bidding wrappers come with various settings, including a timeout feature, and provide analytic tools to determine the effectiveness of different strategies.

One widely used header bidding wrapper is prebid.js, designed by AppNexus in 2015. Other options include Amazon’s Transparent Ad Marketplace (TAM) and Google’s Exchange Bidding in Dynamic Allocation (EDMA).

  • Header bidding requires JavaScript to build a wrapper
  • Wrapper organizes buyers and sets auction rules
  • Publishers must find demand partners and install the wrapper
  • Configuration includes time limits and floor prices

“Header bidding allows publishers to optimize their programmatic auction and maximize their revenue.”

Benefits For Publishers

Header bidding provides several benefits for publishers:

  1. Increased revenue: By allowing publishers to charge higher prices for their premium inventory, header bidding has the potential to increase revenue by up to 70%.

  2. Higher CPMs and revenue growth: Header bidding allows publishers to expand and diversify the pool of advertisers interested in buying impressions. This, in turn, can drive higher cost per thousand impressions (CPMs) and overall revenue growth.

  3. Improved ad quality: Advertisers are willing to bid higher in header bidding auctions to reach a specific publisher’s audience. This competition leads to more relevant and higher quality ads being displayed to users.

  4. Enhanced user experience and SEO results: Header bidding reduces the time required to sell an impression and render an ad on the page. This optimization enhances the overall user experience and can positively impact search engine optimization (SEO) results.

  5. Header bidding allows publishers to charge higher prices for their premium inventory.

  6. Diversifying advertisers interested in buying impressions can drive higher CPMs and revenue growth.
  7. Advertisers bidding higher in header bidding auctions result in more relevant and higher quality ads.
  8. Reduced time to sell an impression and render an ad improves user experience and SEO results.

“Header bidding offers publishers the opportunity to increase revenue by up to 70% by charging higher prices for their premium inventory.”

Benefits For Advertisers

Advertisers benefit from header bidding in several ways:

  • Increased access and reach: Header bidding provides advertisers with a wider pool of inventory, increasing their chances of finding their target audience.
  • Disintermediation: Unlike traditional ad exchanges, header bidding allows advertisers to access the best inventory directly, without any intermediaries. This means that all advertisers have equal access to high-quality inventory, regardless of whether they use Google Ad Exchange or not.
  • Transparency: Programmatic ad buyers can see all of a publisher’s impressions through header bidding, not just the unsold ones. This transparency helps advertisers make informed decisions about where to place their ads.
  • Access to premium inventory: Header bidding enables advertisers to access a publisher’s entire inventory, including premium inventory that was previously only available through direct deals. This means that advertisers have a greater chance of getting their ads seen by their desired audience.

In summary, header bidding benefits advertisers by providing increased access, disintermediation, transparency, and access to premium inventory.

  • Increased access and reach
  • Disintermediation
  • Transparency
  • Access to premium inventory

Setting Up Header Bidding

To set up header bidding, publishers need to follow a few key steps:

  1. Build a header bidding wrapper using JavaScript: This wrapper acts as a container for organizing buyers and setting auction rules.

  2. Search for relevant demand partners: Publishers should look for demand partners that are relevant to their content and target audience.

  3. Install the header bidding wrapper: Once the demand partners are identified, the header bidding wrapper needs to be installed on the publisher’s website.

  4. Configure auction settings: Publishers need to set up configurations for auction time limits and floor prices. This ensures that the bidding process runs smoothly and efficiently.

  5. Customize settings: Header bidding wrappers come with various settings, including a timeout feature. Publishers can customize these settings based on their specific requirements and preferences.

  6. Utilize analytic tools: Header bidding wrappers typically come with built-in analytic tools that provide insights and data on the performance of different demand partners and strategies. Publishers can use this data to optimize their header bidding setup and maximize revenue.

To summarize, setting up header bidding involves building a wrapper, finding relevant demand partners, installing the wrapper, configuring auction settings, customizing wrapper settings, and utilizing analytic tools to optimize performance.

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  • Bullet point 3

Header Bidding Wrapper Options

There are several options available for header bidding wrappers. One popular choice is prebid.js, which was designed by AppNexus in 2015. This open-source solution enables publishers to manage and optimize their header bidding setups effectively. Additionally, Amazon’s Transparent Ad Marketplace (TAM) and Google’s Exchange Bidding in Dynamic Allocation (EDMA) offer alternative options for implementing header bidding.

  • prebid.js: A popular open-source solution designed by AppNexus in 2015
  • Amazon’s TAM: Transparent Ad Marketplace
  • Google’s EDMA: Exchange Bidding in Dynamic Allocation

Introduction To Open Bidding

Open Bidding is a Google product that utilizes server-to-server connections to decrease page latency, increase ad viewability, and maximize yield. It allows all demand partners to simultaneously bid on an impression on the ad server, rather than the user’s browser. By leveraging server-side connections, Open Bidding reduces latency and improves the user experience by moving the auction process to the cloud.

In partnership with Google, Publift has successfully brought Open Bidding to over 50 publishers in Australia and New Zealand. This integration has resulted in reduced management time, increased site speed, and a boost in revenue, particularly during the Christmas season.

Header Bidding Versus AdSense

Header bidding is superior to AdSense due to its ability to allow a wider range of publishers and ad exchanges to bid on inventory. While Google’s market share continues to decline, header bidding gains popularity as it drives a drop in competition among advertising partners of up to 10%. Another contributing factor is the rise of private marketplaces (PMPs), which lead to increased advertiser spending. Header bidding provides a more complex setup compared to AdSense. However, it allows publishers to retain more control over their ad operations, resulting in increased revenue potential.

  • Header bidding allows a wider range of publishers and ad exchanges to bid on inventory.
  • It drives a drop in competition among advertising partners of up to 10%.
  • The rise of private marketplaces (PMPs) has contributed to its popularity.
  • Header bidding provides more control for publishers, resulting in increased revenue potential.

“Header bidding is considered superior to AdSense due to its ability to allow a wider range of publishers and ad exchanges to bid on inventory.”

Comparing Setup Complexity

Header bidding is a more complex setup compared to Open Bidding. It involves the use of header bidding wrappers and demand partner configurations, which offer publishers increased control. However, this also means that there is a steeper learning curve involved.

On the other hand, Open Bidding, managed by Google, provides a simpler interface and reduces latency by moving the auction process to the ad server in the cloud. This helps to free up resources on the user’s browser.

While Open Bidding offers convenience, header bidding allows publishers to retain more control over their ad operations. This can be advantageous for publishers who want more flexibility and control in their advertising strategies.

To summarize the key points:

  • Header bidding requires a more complex setup compared to Open Bidding
  • Open Bidding, managed by Google, provides a simpler interface and reduces latency
  • Header bidding allows publishers to retain more control over their ad operations

In conclusion, both header bidding and Open Bidding have their own advantages and disadvantages. It ultimately depends on the specific needs and goals of the publishers.

Server-Side Header Bidding

Server-side header bidding is an alternative approach that tackles latency issues. By hosting the auction process on an external server in the cloud, server-side header bidding reduces page latency and improves overall user experience. However, it should be noted that server-side header bidding may sacrifice some features, such as higher cookie match rates, transparency, targeted ads, and a higher fill rate compared to client-side header bidding.

Header bidding has revolutionized programmatic advertising by providing publishers with more control, transparency, and higher revenue from their ad inventory. Advertisers also benefit from increased access and visibility to a publisher’s ad inventory. By understanding the implementation process, benefits, and available options for header bidding, publishers and advertisers can make informed decisions on how to optimize their programmatic ad strategies. Publift offers header bidding solutions for digital publishers, empowering them to maximize their revenue potential and reach their target audience effectively.

FAQ

What is a header bidding?

Header bidding is an innovative system that empowers publishers to maximize their revenue potential. By inviting multiple demand partners to bid on their ad inventory simultaneously, publishers can select the highest bid, ensuring they secure the most lucrative advertising opportunities. Unlike the traditional waterfall approach, where unsold inventory is sequentially offered to ad networks, header bidding opens up a competitive marketplace, allowing publishers to take full advantage of the wide range of bids from different demand partners.

This advanced method revolutionizes the auction process by granting publishers more control and greater transparency, ultimately leading to increased revenue. With header bidding, publishers can tap into a broader network of demand partners, expanding their options and optimizing the value of their inventory. By breaking away from the limitations of the waterfall model, header bidding emerges as an efficient and effective solution, unlocking new possibilities in the ever-evolving digital advertising landscape.

Is header bidding good?

Header bidding is indeed a positive development for publishers, as it has transformed the monetization of inventory by offering a more effective and transparent approach to selling ad space. The introduction of real-time bidding has heightened competition among advertisers, leading to increased revenues. By allowing more advertisers to bid on inventory simultaneously, header bidding proves to be a beneficial practice that boosts ad revenue and enhances overall efficiency in the process.

What is the difference between header bidding and RTB?

While both header bidding and real-time bidding (RTB) are methods used in programmatic advertising, there are key distinctions between the two. RTB operates on the basis of individual ad exchanges conducting auctions one after another, while header bidding enables multiple ad exchanges to participate in several auctions simultaneously through RTB. Unlike the sequential approach of RTB, header bidding facilitates a more efficient and competitive process by allowing simultaneous bidding across multiple auctions.

Header bidding’s ability to involve multiple ad exchanges in real-time auctions simultaneously sets it apart from the traditional RTB method. This approach leads to increased competition among ad exchanges, driving up potential revenue for publishers. In contrast, RTB relies on sequential, auction-based processes which can limit the scope and efficiency of bidding. By enabling ad exchanges to bid concurrently, header bidding enhances transparency and can ultimately result in better ad placements and higher profits for publishers.

What are the types of header bidding?

Header bidding is a strategy that can be divided into two main types: client-side and server-side. Client-side header bidding occurs directly on the user’s browser, enabling more precise targeting through cookie matching. Publishers can grant advertisers access to bid level data, enhancing the auction process and ensuring better results for both parties involved.

On the other hand, server-side header bidding operates on the server side, away from the user’s browser. While this method may not provide the same level of detailed bid data as the client-side approach, it offers advantages such as reduced latency and improved page load times. By conducting the auction on the server, server-side header bidding allows for a more streamlined and efficient process, benefiting publishers, advertisers, and users alike.