{"id":74,"date":"2020-01-14T09:07:00","date_gmt":"2020-01-14T09:07:00","guid":{"rendered":"https:\/\/adspyglassblog.wordpress.com\/?p=74"},"modified":"2024-01-08T08:38:53","modified_gmt":"2024-01-08T08:38:53","slug":"a-guide-to-header-bidding","status":"publish","type":"post","link":"https:\/\/www.adspyglass.com\/blog\/a-guide-to-header-bidding\/","title":{"rendered":"What Is Header Bidding and How Does It Work?"},"content":{"rendered":"<p>Its user base might be growing, but header bidding is yet to fully take itself beyond the limitations of ad tech buzzword towards the status of widely understood concept.<\/p>\n<p><span style=\"font-weight: 400;\">For the benefit of those that still can\u2019t get their head around what it means, where it came from and where it&#8217;s heading, we\u2019ll look into these three points in the hope of bringing some clarity to the process.<\/span><\/p>\n<p><!--more--><\/p>\n<h3>Where does it come from?<\/h3>\n<p><span style=\"font-weight: 400;\">To start, we\u2019ll look into <strong>the mechanics of programmatic, or real-time bidding (RTB)<\/strong> &#8211; the engine that houses our subject. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Medium and large publishers looking to sell their inventory via RTB will often <strong>link up to more than one ad network in order to ensure they get the best prices.<\/strong> This also reduces the risk of remnant inventory if no takers arise on any given platform.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The networks are ordered in something of a value chain &#8211; called \u2018the <strong>waterfall<\/strong>\u2019 &#8211; where anything that\u2019s unsold gets pushed down the ladder until it finds a bid. Google and its AdX exchange have a lot of precedence in this way of working due to most publishers using <strong>Doubleclick<\/strong> to monetise their inventory. In the event of ad space going spare, Google will serve its own choice of ads, or even those pointing to its very own Display Network.<\/span><\/p>\n<blockquote><p>Read also\u00a0<a href=\"https:\/\/www.adspyglass.com\/blog\/best-pop-under-ad-networks\/\">10 Best Pop-Under Ad Networks<\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">It\u2019s important to note that publishers can <strong>circumvent the waterfall by selling their inventory in a direct manner<\/strong>. In some cases, this will be done for premium spots reserved for the best prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you still can\u2019t get your head around how the value chain works, here it is in graphical format:<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\" size-full wp-image-112 aligncenter\" src=\"https:\/\/adspyglass.com\/blog\/wp-content\/uploads\/2017\/05\/waterfall.png\" alt=\"waterfall\" width=\"637\" height=\"561\" srcset=\"https:\/\/www.adspyglass.com\/blog\/wp-content\/uploads\/2017\/05\/waterfall.png 637w, https:\/\/www.adspyglass.com\/blog\/wp-content\/uploads\/2017\/05\/waterfall-300x264.png 300w\" sizes=\"(max-width: 637px) 100vw, 637px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This might look like a good way of working, and so many media owners and buyers use the waterfall to trade ad space in real time. It does however come with <strong>issues<\/strong>, the main ones being: <\/span><\/p>\n<ul>\n<li><b>Setup and maintenance: <span style=\"font-weight: 400;\">This method requires resource in the setup phase but also on an ongoing basis. A good strategy is needed to make the most of programmatic in this way, so constant tweaking is in order.<\/span><\/b><\/li>\n<\/ul>\n<ul>\n<li><strong>Lost revenue:<\/strong> <span style=\"font-weight: 400;\">With the waterfall, there is no guarantee that a network will pay what the publisher demands. <\/span><\/li>\n<\/ul>\n<ul>\n<li><strong>Latency issues:<\/strong> <span style=\"font-weight: 400;\">Most waterfalls take place on a remote server, which means the heavy lifting takes place away from the site. That said, this method pushes ad space from pillar to post, so there is also a lot of inefficiencies that lead to problems with latency.<\/span><\/li>\n<\/ul>\n<p>Things needed changing and in 2009, AppNexus came up with a solution that integrated a pre-bid phase into the mix. Designed to break up some of the dominance held by Google, the technology sought to maximise publisher revenue by allowing them to act as a supply-side platform (SSP). This was the early foundations of header bidding.<\/p>\n<blockquote><p>Read also: <a href=\"https:\/\/www.adspyglass.com\/blog\/native-ads-everything-you-wanted-to-know\/\">Native Ads | Everything you wanted to know as a website owner<\/a><\/p><\/blockquote>\n<h2>What is header bidding?<\/h2>\n<p><span style=\"font-weight: 400;\">Header bidding enables publishers to open up all of their inventory to demand partners &#8211; be it an SSP, an ad exchange or otherwise &#8211; for an auction conducted in a simultaneous manner. A lack of preference towards one network means the impression always finds the highest bidder, while the simpler process saves a lot of time in trying to work out which ad goes to whom.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are other ways that <strong>header bidding differs from the waterfall method<\/strong>. As we mentioned earlier, the latter is housed on a remote server, away from the domain in question. <strong>Header bidding is essentially a piece of JavaScript <\/strong>on the publisher\u2019s site, placed in the \u2018header\u2019 of their page, which<strong> connects with ad servers to collect bids and assign the winners.<\/strong><\/span><\/p>\n<blockquote><p>Read also\u00a0<a href=\"https:\/\/www.adspyglass.com\/blog\/what-is-ad-mediation-and-how-does-it-work\/\">What Is Ad Mediation And How Does It Work<\/a><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Here\u2019s a little look at how that process plays out:<\/span><\/p>\n<p><img decoding=\"async\" class=\"  wp-image-115 aligncenter\" src=\"https:\/\/adspyglass.com\/blog\/wp-content\/uploads\/2017\/05\/waterfall2-1.png?w=412\" alt=\"waterfall2 (1)\" width=\"439\" height=\"641\" srcset=\"https:\/\/www.adspyglass.com\/blog\/wp-content\/uploads\/2017\/05\/waterfall2-1.png 566w, https:\/\/www.adspyglass.com\/blog\/wp-content\/uploads\/2017\/05\/waterfall2-1-206x300.png 206w\" sizes=\"(max-width: 439px) 100vw, 439px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As aforementioned, <a href=\"https:\/\/www.adspyglass.com\/#reviews\"><strong>header bidding is a great way for publishers to boost their revenue<\/strong><\/a>. Some sites have reported huge lifts in programmatic earnings just by using the method, with every demand partner having the potential to lift this figure by 10% each time.<\/span><\/p>\n<p>Some of the other advantages include:<\/p>\n<ul>\n<li><b>A clear view: <\/b><span style=\"font-weight: 400;\">Header bidding opens everything up for the publisher, who sees when a bid has been made and how much it\u2019s for. After this, a call can be made on the most appropriate action.<\/span><\/li>\n<li><b>Setup and maintenance:<\/b><span style=\"font-weight: 400;\"> Earlier we touched on one of the negatives of the waterfall &#8211; the initial setup and ongoing tweaks. With header bidding there is far less to manage, which is where part of the time saving comes in.<\/span><\/li>\n<li><b>Superfast transfers: <span style=\"font-weight: 400;\">Without the need to shuffle the inventory around and pass it between networks, ads are traded at a much faster pace with header bidding. <\/span><\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Unfortunately it is not without its downsides. Although things do get easier once everything\u2019s up and running, header bidding tag integrations cost money and are a bit more complex as they don\u2019t come with the same level of assistance as the waterfall method. Analysts have interpreted this as a \u2018hacky workaround\u2019 to DoubleClick.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Site delays are another issue, as having the JavaScript on the page can also cause disruptions in the end user\u2019s own experience on the site. Having good ad operational staff to keep an eye on things is vital, but <strong>it\u2019s easy to see how smaller publishers can\u2019t afford the risk.<\/strong><\/span><\/p>\n<p>Lastly, there is the risk of yield. Many see header bidding as the next new craze and it\u2019s certainly enjoying its time in the limelight. Will the market adapt to the process and start playing the system? Only time will tell.<\/p>\n<blockquote><p>Read also\u00a0<a href=\"https:\/\/www.adspyglass.com\/blog\/ad-blockers-five-important-facts-for-publishers\/\">Ad Blockers: Five Important Facts for Publishers<\/a><\/p><\/blockquote>\n<h3>Looking ahead<\/h3>\n<p><span style=\"font-weight: 400;\">The most interesting debates from header bidding circulate around <strong>what will happen once the buzz dies down. <\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the areas primed for improvement is latency, as despite delays coming from the process of uploading inventory to multiple networks, the presence of additional code on the publisher\u2019s site means header bidding can also slow things down. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">An oft-cited solution is to have the process moved from the browser to a separate server, like with the waterfall. This would host the same conversations but <strong>without carrying a burden on the user\u2019s connection to the page.<\/strong> Some of the tech industry\u2019s biggest and brightest (Google, Amazon etc) are in the process of trialling similar, \u2018server-side\u2019 technology for header bidding, although analysts believe this to be in its very early stages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing that might speed this up is co-operation between programmatic firms. This may seem optimistic given the competition between certain parties, but with the recent announcement that AppNexus, Pubmatic and Index Exchange will use the same header connection to enhance access to partners and prevent segregation of advertisers, even this may be about to change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All in all, while some have been sceptical over whether the practice can maintain the same level of coverage it\u2019s attracted, header bidding is alive and well in programmatic.<\/span><\/p>\n<p>There are advantages and disadvantages to every ad network. Thanks to\u00a0<a href=\"https:\/\/www.adspyglass.com\/blog\/what-is-ad-mediation-and-how-does-it-work\/\">ad mediation services<\/a>\u00a0like\u00a0AdSpyglass, publishers can link themselves up to all of the platforms above and reap the benefits that each can offer.<\/p>\n<p style=\"text-align: center;\"><a style=\"font-size: 18px; line-height: 36px; padding: 5px 20px; background: #00AEDC; color: #fff; height: 40px; border: 1px solid #00AEDC; border-radius: 20px;\" href=\"https:\/\/www.adspyglass.com\/#registration?utm_source=blog_adspyglass&amp;utm_medium=link&amp;utm_campaign=what_is_ad_mediation\" rel=\"noopener noreferrer\">Join AdSpyglass<\/a><\/p>\n<blockquote><p>Read also\u00a0<a href=\"https:\/\/www.adspyglass.com\/blog\/seo-for-adult-sites-how-to-drive-organic-traffic\/\">SEO for Adult Sites \u2014 How to Drive Organic Traffic<\/a><\/p>\n<p>Read also\u00a0<a href=\"https:\/\/www.adspyglass.com\/blog\/best-adult-ad-networks\/\">Best Adult Ad Network<\/a><\/p>\n<p>And compare all ad networks\u2019 CPM rates by countries here:\u00a0<a href=\"https:\/\/www.adspyglass.com\/best-ad-networks?utm_source=blog_adspyglass&amp;utm_medium=link&amp;utm_campaign=seo_for_adult_sites_organic_traffic\" target=\"_blank\" rel=\"noopener noreferrer\">Top Ad Networks<\/a>.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Read the simple guide to Header Bidding: where does it come from, what is header bidding and how does it work<\/p>\n","protected":false},"author":9,"featured_media":545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-74","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is Header Bidding and How Does It Work? 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