Programmatic advertising has opened up a whole new world of advertising revenue for publishers. Using ad tech, publishers can leverage programmatic to generate passive revenue from a web page and gain access to a huge pool of advertisers without having to sell directly.<\/p>\n
However, the provider you choose and the method you use to access advertisers can make a big difference. Today, most publishers opt for header bidding because it allows real-time access to more advertisers and results in higher yields.<\/p>\n
So, what is header bidding? Let\u2019s take an in-depth look at how header bidding works, its benefits, and why it\u2019s a better approach for optimizing ad revenue than Google AdSense.<\/p>\n
Header bidding is an advanced programmatic advertising technique that allows publishers to offer ad inventory to multiple ad exchanges at the same time. This real-time bidding (RTB) process allows many different demand sources to offer bids on the same programmatic ads at the same time.<\/p>\n
Header bidding can be a significant competitive advantage for publishers, generating greater monetization through higher rates. That\u2019s why 84% of the top 10,000 websites in the US have\u00a0moved to header bidding<\/a>. The majority say the more competitive bidding structure\u00a0produced higher rates<\/a>.<\/p>\n Not all ad networks use header bidding, though. For example, Google AdSense only compares bids from advertisers that are using the Google Ads platform. That is just one reason so many advertisers have switched to platforms that use header bidding, such as\u00a0Newor Media<\/a>.<\/p>\n Think of it this way. You\u2019re selling your home and decide to auction it off. You can invite one specific real estate brokerage to bid on behalf of their clients looking for homes. With header bidding, you can open up the auction to every real estate agent and every homebuyer. Bids are sent instantly in real-time and you can pick the highest one.<\/p>\n Header bidding can be initiated either through a central server (server-side header bidding) or via a publisher\u2019s website (client-side header bidding).<\/p>\n Client-side header bidding requires publishers to add a snippet of code to their website. Each time a page loads in a user\u2019s browser, the code triggers a real-time ad call to its ad network\/demand partners. Bids from multiple advertisers and demand partners come in and are analyzed. The highest bidder from among all of the different sources wins the bid.<\/p>\n In most cases, not only are these bidders in competition with other advertisers through ad exchanges, but they are also bidding against direct deals that publishers have made on their own. After the winning bid is determined \u2014 within milliseconds \u2014 an ad server displays the ad in the appropriate ad unit on the publisher\u2019s website.<\/p>\n With server-side header bidding, publishers also use a snippet of code on their website, but the activity takes place on a central server rather than in a browser. So, when a user opens up a page, the ad request is sent to a vendor\u2019s server, which then sends out requests to multiple demand sources in real-time. The highest bidder wins and is passed back to the publisher\u2019s ad server, which then displays the ads.<\/p>\n There are pros and cons to each method.<\/p>\n The programmatic advertising ecosystem works in the blink of an eye. From the time an ad call is placed, the highest bidder is chosen, and the ad is served. Behind the scenes though, a lot of activity is happening between SSPs (supply-side platforms), ad exchanges, and DSPs (demand-side platforms).<\/p>\n Rather than buy directly from a publisher, advertisers and ad agencies use a DSP\u00a0 to buy online ads across multiple publishers. DSPs help in targeting and allow advertisers to set parameters on what they\u2019re willing to buy. For ad buyers, this avoids having to negotiate with individual sites.<\/p>\n SSPs manage the ad supply. Publishers connect their ad inventory to the SSP, which allows them to offer their ad units to multiple demand partners. Within the SSP, publishers can set a price floor for rates and filter ad placements.<\/p>\n The two platforms work together to facilitate a buy. The DSP aggregates advertiser requests and bids from its demand partners, while the SSP consolidates a publisher\u2019s inventory from multiple publishers. When there\u2019s a match between demand partners and demand sources with supply sources, a bid is accepted and ads are served.<\/p>\n If all of this seems complicated, it can be. That\u2019s why you want to work with\u00a0<\/em>programmatic advertising<\/em>\u00a0experts like<\/em>\u00a0<\/em>Newor Media<\/em><\/a>\u00a0that can handle all of this for you and provide a passive revenue stream.<\/em><\/p>\n The header bidding process works by offering ad inventory to multiple ad exchanges at the same time. The higher bidder is chosen automatically. The winning bid results in that advertiser\u2019s ads being shown. And it all happens in near real-time to avoid disrupting the user experience.<\/p>\n Dynamic allocation allows all demand that hasn\u2019t been guaranteed through open auctions or open bidding to compete in real-time.<\/p>\n Publishers use header bidding wrappers to manage demand sources.<\/p>\n A header bidding wrapper manages all of the bidding partners that publishers want to connect with. It sets rules for the programmatic auction and ensures bid requests are all triggered simultaneously. These header bidding wrappers also have a timeout feature, which cuts bids off after a certain time to ensure the programmatic process doesn\u2019t impact the user experience.<\/p>\n Header bidding wrappers result in unbiased auctions because they allow all demand partners to bid. It also makes it easy for publishers to add new demand partners without having to change the code for individual partners on the website.<\/p>\n Prebid.js<\/a>\u00a0is a popular header bidding wrapper that supports more than 300 demand sources and multiple ad servers. Also known as a prebid wrapper, it\u2019s an open-source solution that includes a library of adapters that can be used to connect with demand partners.<\/p>\n There are also alternatives to prebid.js, such as:<\/p>\n Using prebid.js wrappers can streamline the process and decrease the demand partner response time, so ads load more quickly. It is also flexible to handle multiple types of ad units and differentiate between desktop and mobile channels.<\/p>\n However, implementation can be complex. If publishers choose to manage it in-house, they will need an experienced Ad Ops team to set it up, manage, and monitor it. Most publishers choose to work with vendors that will manage the implementation and management for them.<\/p>\n Before the header bidding solution became popular, the most common method for programmatic ads was the waterfall method.<\/p>\n Also known as daisy-chaining, a waterfall auction works by sending ad calls to specific ad networks. Publishers set priorities so one network gets the opportunity to bid first. If no bid meets the publisher minimums, the opportunity passes to the next ad network, and so on.<\/p>\n While it\u2019s an easier process to set up, it is limiting. So-called passbacks (accepting bids from ad networks in turn) result in less competition for ad impressions. If the first network has a bid that meets publisher minimum rates, it will be accepted without giving others a chance to bid on it. This can limit publisher yields.<\/p>\n Passbacks can also increase latency. As ad calls go from one ad network to the next, etc., this can impact load times and affect the user experience on the publisher\u2019s website.<\/p>\n Another way of buying and selling advertising space is programmatic direct. Unlike real-time bidding, advertisers and publishers agree on the inventory and rate but then allow the rest of the ad delivery process to be handled by AdTech platforms. Advertisers choose websites, choose placements, flight dates, and acceptance rates.<\/p>\n Programmatic direct is used most often today for premium site placement when advertisers want to target specific websites. For publishers, it generally leads to higher rates but may limit the ability to fill much of their available ad inventory.<\/p>\n Open bidding is Google\u2019s server-side unified auction. Publishers invite various ad exchanges, SSPs, and ad networks to bid in real-time for ad placement. The process happens on Google\u2019s servers and is only open to those invited and publishers using Google Ad Manager 360. This can prevent many publishers from accessing the open bidding platform.<\/p>\n Header bidding offers benefits for publishers and advertisers.<\/p>\n The biggest benefit for publishers is increasing ad revenue through greater yield. Since bids are competitive and open to all bidders, publishers will always get the best rates available at the time an ad call occurs.<\/p>\n Other benefits for publishers using header bidding include:<\/p>\n Header bidding is a better solution for digital advertising for publishers that use Google AdSense or participate in Google AdX. Google only lets advertisers in the Google ecosystem bid on ad placements. Header bidding does not have this restriction, allowing more demand partners to bid for ad space. This leads to more competition and better yields.<\/p>\n Google also uses average bid values for optimization. Even if an advertiser is willing to pay higher rates, the bid will stay at the average value set on Google\u2019s ad exchange. This can leave money on the table for publishers. In header bidding, the highest bid wins.<\/p>\n When choosing a partner to help implement the header bidding process on your site, there are several specific things you want to consider.<\/p>\n Pricing is about more than just the rates you can get. Header bidding platforms work on a rev-share model, so you\u2019ll want to have a solid understanding of the fees that get deducted from the ad dollars before you get your share. You\u2019ll also want to examine payment terms and any lock-in periods.<\/p>\n Wondering how much money you can make from\u00a0<\/em>ad networks<\/em>\u00a0that use\u00a0<\/em>header bidding<\/em>? Try Newor Media\u2019s free<\/em>\u00a0<\/em>Earnings Calculator<\/em><\/a>\u00a0to find out.<\/em><\/p>\n Whether you choose to manage your prebid wrappers yourself or have a partner manage them for you, you need to know the process involved and how easy (or difficult) it will be to add or remove demand partners and bidding partners. You\u2019ll also need to make sure they support your choice of server-side or client-side approaches to header bidding.<\/p>\n Support is essential to your success in programmatic advertising. Google AdSense, for example, is mostly self-service, while most header bidding partners will provide hands-on support.<\/p>\n Newor Media, for example, prides itself on responding to most requests within an hour of being submitted. Newor Media also works with publishers to optimize ad units and ad placements and provide the proper balance between maximizing revenue and providing fast page load times for a better user experience.<\/p>\n Make sure any header bidding platform you work with is proactive about protecting publishers from ad fraud. You also want the ability to set allow lists and block lists to prevent showing ads that don\u2019t meet your standards.<\/p>\n The goal of an ad network is to optimize your revenue and help you get the highest possible rates for your ad inventory. You will want access to accurate, detailed reporting \u2014 including line item discrepancies \u2014 so you can evaluate whether you\u2019re meeting that goal. Reporting data gives you the insight you need to optimize your ad units, inventory, pricing strategy, etc.<\/p>\n To get started with header bidding, you should know that you can do it on your own, but it\u2019s complex. It takes dedicated and experienced AdOps teams and detailed programming knowledge to ensure code doesn\u2019t conflict with anything else on your website.<\/p>\n Prebid wrappers also require specific expertise. In the end, it can be expensive and outweigh the benefits of the resulting revenue. That\u2019s why almost all publishers use partners to implement header bidding.<\/p>\n One of the easiest ways to get started is to\u00a0get in touch with the programmatic advertising and header bidding experts at Newor Media.<\/a>\u00a0Let us handle the technical side of things, so you can focus on growing your website while we focus on growing your revenue.<\/p>\n","protected":false},"excerpt":{"rendered":" Programmatic advertising has opened up a whole new world of advertising revenue for publishers. Using ad tech, publishers can leverage programmatic to generate passive revenue from a web page and gain access to a huge pool of advertisers without havingRead more…<\/a><\/p>\n","protected":false},"author":1,"featured_media":845,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\nClient-Side<\/strong>\u00a0vs\u00a0<\/strong>Server-Side Header Bidding<\/strong><\/h2>\n
Pros of\u00a0<\/strong>Client-Side<\/strong>\u00a0<\/strong>Header Bidding<\/strong><\/h3>\n
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Pros of\u00a0<\/strong>Server-Side Header Bidding<\/strong><\/h3>\n
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Cons of\u00a0<\/strong>Client-Side<\/strong>\u00a0<\/strong>Header Bidding<\/strong><\/h3>\n
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Cons of\u00a0<\/strong>Server-Side Header Bidding<\/strong><\/h3>\n
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Supply-Side vs Demand-Side Platforms<\/strong><\/h2>\n
How Does\u00a0<\/strong>Header Bidding Work<\/strong>?<\/strong><\/h2>\n
Header Bidding Wrappers<\/strong><\/h3>\n
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Pros and Cons of\u00a0<\/strong>Prebid.js<\/strong><\/h3>\n
What Came Before\u00a0<\/strong>Header Bidding<\/strong>?<\/strong><\/h2>\n
Waterfall Method<\/strong><\/h3>\n
Programmatic<\/strong>\u00a0Direct<\/strong><\/h3>\n
Open Bidding<\/strong><\/h3>\n
The Benefits of\u00a0<\/strong>Header Bidding<\/strong><\/h2>\n
4 Benefits for Publishers<\/strong><\/h3>\n
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4 Benefits for Advertisers<\/strong><\/h3>\n
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Why\u00a0<\/strong>Header Bidding<\/strong>\u00a0is Better Than Google AdSense<\/strong><\/h2>\n
How to Choose a Partner to Help Implement\u00a0<\/strong>Header Bidding<\/strong>\u00a0on Your Site<\/strong><\/h2>\n
Pricing<\/strong><\/h3>\n
Prebid<\/strong>\u00a0Wrappers<\/strong><\/h3>\n
Support<\/strong><\/h3>\n
Ad Fraud and Brand Safety<\/strong><\/h3>\n
Reporting<\/strong><\/h3>\n
How to Get Started<\/strong><\/h2>\n