Server Side Header Bidding Explained Ad Ops Insider

To date, header bidding has been an attractive catalyst on the sales side for era providers. They now not had to outperform their entrenched competitors at a writer or maneuver for waterfall place. Any fill was incremental fill in a header bidding world, and publishers were eager to add new demand to their networks. Similar to the publisher quandary although, as a result of most shoppers have already filled their accessible positions in the header, technology providers are back to having to earn their courting. Vendors are looking to return to a world where they can still sell their facilities as “no cost” to the publisher and that they can have it through a server side point of entry.

This result is great for Exchange B, OK for the publisher, and bad for the $5. 00 bidder. Obviously the ideal the $5. 00 bidder in Exchange A would win the impression, since they were the highest bidder, and pay $3. 01, using Exchange B’s bid in the same, unified auction. Server side header bidding permits this ideal situation because there is a relevant platform vs.

just a static JavaScript wrapper that can see all bids, handle the public sale logic, and notify winners in their price paid. Each trade is already built to do that within its own system with DSP bids, and other SSP bids aren’t any alternative. Sadly, server side header bidding is not all excellent news. The largest draw back to this new era is that it has the potential to harm monetization through poor cookie match rates. This occurs because the SSPs that move from a consumer side setup to a server side setup lose access to the end user and can’t assign or read their cookie from now on. With basic header bidding every user calls every trade on every page, which may be lousy from a latency attitude but is fantastic from a user sync perspective.

Each exchange can at all times and without delay identify each user’s anonymous cookie. When exchanges move to server side they ought to identify each user by keeping their cookie in sync with the tag on page exchange’s cookie. This adds a center man to the equation and makes the server side exchanges completely based on the tag on page exchange syncing with them often. An unsynced users is a similar as a cookie less user, and infrequently worthless to an exchange. There’s no data connected to the user, so bidders can’t value it at a lot more than a blind prospect, which isn’t worth much. Unsynced users are inclined to get extraordinarily low bids or no bid at all, so the impact is colossal.

Another major difference among client side and server side header bidding is transparency. While the auction is occurring in browser, publishers can have birds eye view and keep an eye on over bid price, though there are latency concern. Now the auction moves back to SSP side and it turns into a black box again. I am sure publishers gets some tools, even advanced reporting, to help optimize yield. However, unless they can access bid stream data and have a team of information analyst to display screen and analyze performance, if can be complex to set the most fulfilling floor price. The trust and transparency issue remain.

I could have a stupid query. Is it required for SSP’s to combine with other SSP’s to facilitate server side header bidding. From what i understand, in server side header bidding, once the wrappers are called by the user, it redirects to the programmatic public sale server not always an SSP, can be publisher’s server too which calls multiples SSP’s calling different demand sources. In the diagram given above explaining server side header bidding, the user calls the header to an SSP which calls other SSP’s and each relays the inventory to the demand sources. Is that accurate?What if a writer like MSN redirects the header tag to their own server as an alternative of an SSP?Is that feasible?Please help me bear in mind this. If a publisher were to host their own auction server – which incidentally I think can be rare and unwise for a lot of of purposes, they might basically act as an SSP and have to perform all of the other SSP integrations for server side communication.

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From a procedure side, you are right – the user would hit the page, have the code to the tag on page SSP served to them, call that SSP, and then that SSP would call any other server side included SSP companions. The tag on page associate would then procedure all server side bids along it’s own bid, and reply back to the user with the end result, which would be fed to the ad server and decisioned in an analogous manner as regular, client side header bidding. Good query; my usual POV is that provide side platforms will consolidate in a better few years leaving a number of available in the market. What made room for lots of exchanges was the reality they all vied for access to supply, and various systems had access to various supply. But now header bidding has commoditized this supply – everyone is selling an analogous thing. It’s only a question of time before buyers act in this and just bid on the platform that has access to a lot of supply with low fees and transparent public sale mechanics.

SSPs will battle over incentivizing demand to run via their platform and create a price war among each other that may starve some agencies out of enterprise. What’s appealing is that server side header bidding will likely just accelerate this, because it will just speed up commoditization across more platforms as publishers chase quick dollars before buyers crack down.