There have been countless developments that have taken digital marketing to the next level: hello header bidding! More and more publishers are now beginning to implement this solution. They use it to take their revenue from the site to greater heights and for a better purpose. There are a number of reasons and factors why you should use header bidding for your ad network. Make sure that you go through this explicit read. It will help you to learn about the key reasons to use header bidding on your site.
You should know that the traditional ways of marketing and advertising will become irrelevant and will not have the desired effects in the coming years. Many people do not know how they can tackle this situation. Header bidding is something that can assist. There is no doubt that most people still do not know about the significance that header bidding holds, which we will uncover in this post.
What Is Header Bidding?
Since its development and debut, people worldwide have called it by many names. Header bidding is also known as pre-bid. It is an enhanced programmatic technique in which publishers can offer their inventory to many ad networks and ad exchanges while making calls to their ad servers. This idea is led by multiple demand sources bidding on the same ad inventory.
Publishers can enhance and extend the yield that helps them make more money which is the main priority here. Header bidding is the method for publishers that helps to constantly offer ad space out to countless ad exchanges and SSPs all at once. It also offers publishers more control over the process, and they can also choose to whom they want to sell.
What Was Before Header Bidding?
Earlier, publishers used to auction their ad space. They used to offer their ad placement only once and never at the right prizes that would be benefitting them. Publishers’ orders would always be considered first.
It is because they sit at the #1 priority in the ad server. After the exhaustion of the frequency cap on the direct order, the ad server tends to pass the impression down to the programmatic line items in the sequential system. This process is just as popular as the waterfall process. The waterfall process is the term referring to the real-time auction environment.
The significant drawback of the waterfall system was the price your impressions sell for as it does not reflect the real value. The unsold inventory is offered to the highest-ranking ad exchange. It is people who determine this by the size rather than the highest bidder. If no one in the group accepts it, the process will pass it down to the second tier. It will continue to do so if someone bids for it.
Someone in the ad network may be in the next tier down who will be ready to pay the higher price. The issue is that they never got the chance to bid on the needed inventory. Hence, it leaves the revenue for the publisher.
How Does Header Bidding Work?
The Header bidding process initiates as soon as the page starts to load in the user’s browser. The coding for header bidding will execute and call the demand partners. For example, Pubmatic for bidding on the impression before they call the ad server. It happens all within the specific time frame which the publisher picks.
During the split-second window, most of the demand partners will hold their auctions to determine the highest bid they send. The top value of the bid value from one partner and passed from the visitor’s browser to the ad server of the publisher before the call of the direct inventory.
Heading the bidder means that all sources of the demands are participating in the auction simultaneously. Publishers will be able to control which sources can participate in the process. Publishers can also increase the process they charge for premium inventory. Several publishers increased their revenue by around 70 percent when implementing header bidding.
Reasons To Implement Header Bidding
So now you know the significance of header bidding and how it can help publishers make good money. Let us see why it is essential to implement header bidding on the sites:
- Allows More Advertisers To Bid For Impressions
Header bidding will let the publisher expand and diversify the advertisers willing to purchase the site impression. Not being reliant on a small set of advertisers will increase the resilience of the business and adaptability.
- More Control
Header bidding will allow advertisers to select the sources to participate in the whole bidding process. Publishers can prioritize certain advertisers and encourage the marketers to continue to work with their favorite publishers. It helps publishers gain back control over their sites.
- Increased revenue
Header bidding helps publishers make their ad inventory accessible to more advertisers. It can help drive higher CPMs and maximize ad revenue. Many publishers can take their revenue to the next level through header bidding.
- Better Ad Quality
Advertisers with specific audience affinity for the publisher will bid higher to get the ads in front of those users. The amount of competition in the market helps get higher and better quality and more relevant ads.
- Fast Loading Time
When implementing header bidding, you will be able to decrease the needed time for selling the impression and render an ad on the page that will help you to enhance the whole user experience. It will also help attract more visitors and increase engagement.
- Transparency
Programmatic ad buyers will get a look at most of the publisher’s impressions, other than those that went unsold in the waterfall process.
Conclusion
Header bidding is the future; after its development, programmatic advertising has benefitted a lot as it’s the real money maker for the stakeholders involved here. Start using Header Bidding now to maximize your ad revenue.
