Header bidding: What is it? An All-Inclusive Handbook for Publishers

Header bidding: What is it? An All-Inclusive Handbook for Publishers

With header bidding programmatic advertising technology, publishers may concurrently deliver their ad inventory to many sources of ad demand. Because there are many ad auctions going on at once, more advertisers are compelled to bid against one another, raising the price, which boosts ad income.

Although comprehending header bidding's definition, operation, and background is helpful, publishers should focus more on learning how to utilize it to optimize profits. For this reason, we'll begin with a quick introduction to header bidding before concentrating on your implementation alternatives. In conclusion, we address around twelve often asked issues concerning header bidding.

You may connect with leading SSPs, ad networks, and ad exchange platforms with ease with the aid of Snigel. Additionally, a specialized ad management expert will design, execute, and oversee an ad campaign tailored to your website's particular requirements. Get in touch to find out more.

Why do publishers utilize header bidding, and what does it entail?

Header bidding, often referred to as advanced bidding, pre-bidding, or pre-bidding, is an alternative to the traditional "waterfall" procedure.

In the past, publishers have submitted available ad inventory to demand sources (ad networks, ad exchanges, and supply-side platforms) one at a time via a waterfall approach. The advertiser with the highest bidder wins the advertising inventory, which is auctioned off by the demand source. The advertising inventory is sold if the highest bid exceeds the publisher's predetermined price threshold. The advertising inventory is passed to the next demand source until it is sold if the highest offer is less than the pricing level.

The waterfall approach has three key problems:

If the inventory is sold before it reaches individuals who would be ready to give more money, they could not have the chance when the sources of demand trickle down further in the bidding process. This implies that publishers are losing out on money.

Typically, the top-ranked demand sources are given the first chance to submit a proposal. Regretfully, publishers have less opportunity to make money since the ranking method often takes into account the size of the network rather than the amount bid.

The lengthier it takes for the advertisement to load on the website, the more demand sources you need to submit your ad list to.

These issues are resolved by header bidding, which establishes an open auction where many demand sources may concurrently bid on ad space. As a result, there are several simultaneous ad auctions in addition to various advertisers competing against one another. Because of the increased competition, advertising income rises.

How do you bid on headers?

Publishers must first include a JavaScript element to the website header. This element, known as a header bidding wrapper, enables the publisher to conduct an open auction and invite several demand partners to bid (this is how the term "header bidding" originated).

Ad requests, which include information about the user, the webpage they have seen, and the ad units on the page, are sent concurrently to many ad demand partners when a user visits the website, starting an auction. Based on the details in the ad request, advertisers may then determine in real time how much they are prepared to bid.

The ad creative is shown to the user on the backend by the advertiser's and publisher's ad servers after the determination of the winning bid.

The whole thing takes place in milliseconds!

In what way is header bidding implemented?

There are two primary steps in beginning header bidding:

Configuring and maintaining the header bidding wrapper include putting the code on your websites, selecting parameters (such the duration of the advertiser bid period), and more.

Establishing and maintaining accounts with each demand source: A lot of demand sources only allow you to join their networks via invitation, and most have complicated restrictions for doing so (more on this later). ..Either use an open-source platform to handle the wrappers and demand sources yourself, or collaborate with a header bidding partner to handle these tasks.

It's crucial to remember that configuring the header bidding wrapper and connecting to demand sources is only the initial step before weighing those two choices. There are a few more things to think about in order to maximize its benefits:

How can you be confident that your header bidding configuration won't exacerbate page delay and adversely affect other user experiences?

Which will generate more money for you at a certain location: two smaller advertisements or one bigger one?

Which kind of advertisements will generate the greatest income for you

Where can you position adverts to get the most money?

You're not penalized for studying. How do you serve adverts to people that use hydroblockers?

What user data can you provide marketers to entice them to increase their ad spending?

How will you manage the various nations' legislation pertaining to user consent?

plus a whole deal more.

Your ability to generate money from advertisements may significantly change if you work with a header bidding partner to answer these concerns and put the appropriate answers into practice. Selecting the proper partner may result in a 50%+ boost in advertising income.

Note: Snigel can assist you in optimizing your ad arrangement for optimal income and an excellent user experience; we provide particular examples below.

By using header bidding systems that are open-source

You are in charge of your whole header bidding strategy and method when utilizing an open-source header bidding platform. Even though it may seem apparent, a lot of publishers don't realize how difficult and time-consuming this process is. You'll need a team of full-time engineers and a team of full-time ad operations professionals to maximize the results of your in-house header bidding.

Usually, header bidding can only be efficiently managed by extremely big publications. Although header bidding may be used by smaller publishers, most publishers lose a significant amount of money due to their limited ability to optimize their ad placement.

Although there are a number of open-source header bidding systems available (the most well-known being Prebid.js), implementing and maintaining them all calls for highly developed technical abilities.

Advantages

It's cost-free. (If you possess the required expertise in development and ad operations, open-source platforms may assist you in avoiding income sharing with other parties.)

Your advertising plan is entirely up to you.

Deficit

To put up an efficient system, you'll need a lot of resources (such as an ad ops team, a development team, and a defined budget).

You may not have as many technological solutions as you would want to address issues like sluggish page loads. If you pick an open-source platform, you will have to pay for extra software that you will need to design these solutions yourself. Many organizations have spent years and vast amounts of money creating software to assist alleviate these concerns.

Due to the need to gather several invoices, reconcile them to the appropriate dashboard, and the fact that many SSPs have Net 60 or Net 90 payment periods, it might take longer to be paid. On the other hand, the majority of header bidding partners charge on a Net 30 basis and handle payment collection from the SSP on your behalf.

Big publishers with the means to employ developers and ad operations experts specializing in header bidding implementation are the ideal candidates to deploy open-source header bidding platforms.

collaborating with a partner in header bids

Choose from a wide variety of header bidding partners, each of whom will provide a unique set of advertising technology and services.

Numerous header bidding companies will assist you with the initial setup of any ad technology they provide and link you with several demand partners. After that, you'll have access to a self-service portal where you may modify certain elements of your marketing plan. You may or might not be able to call a help line with inquiries.

To make the required modifications using this kind of header bidding partner, you will still want some technical know-how. Additionally, you'll want the assistance of an expert in ad strategy to choose the best layout.

However, other header bidding businesses, such as Snigel (our header bidding solution), have a full-service strategy. You will be paired with an advertising management expert at Snigel who will design, carry out, and oversee a fully personalized advertising campaign on your behalf. You won't need any in-house developers or advertising professionals.

Additionally, Snigel has cutting-edge, AI-powered advertising technology:

AI bidder optimization matches the top bidders with available ad space depending on country, device, and browser, therefore increasing fill rates and improving load times. Revenue might rise by more than 7% as a result.

Every time a person visits a website, adaptive advertising—which fills the ad space with an ad of any size—will bring in the maximum money. Revenue may rise as a result by 10% to 30%.

Super adhesive is a tool for displaying huge ads in constrained areas. Larger advertisements usually have a higher cost-per-mill.) This may result in a 20+% boost in income.

The Smart Refresh feature allows a user to scroll down and back up, move sites, and come back up on a page if they remain on it for too long. It does this by displaying a new ad in the same ad space. Is, for example. Revenue might rise by more than 6% as a result.

Used to transition between message kinds, Adblock recovery may be used to block both high-paying and compliant advertising depending on user preferences. This guarantees that every pageview generates some income, and it may boost revenue by more than 10%.

AdStream, a tool for displaying native video adverts of the highest quality on your website. Revenue may rise as a result by 23%.

plus a whole deal more.

All of the main ad networks are connected with Snigel's lightning-fast header bidding stack, including Google AdX, OpenX, Amazon Publisher Services, Index Exchange, and others. This makes it possible for the highest-bidding, best-quality ad buyers to access your ad inventory.

Read our guide on header bidding solutions for your website to find out more about the many kinds of header bidding partners and how to choose one.

Advantages

gain in ad income: Most publishers report a net gain in ad revenue that would not have been feasible without a header bidding partner, even if partnering with one entails a charge (often a % of ad revenue collected). ..Experts in advertising operations are at your disposal: Most publishers lack the time and experience necessary to develop and manage a successful advertising strategy. You will be linked to the top bidders for your website, your ad units will be positioned for maximum impressions without compromising user experience, you will be safeguarded from policy breaches, and much more with an excellent ad operations expert like Snigel. The amount of money you make is significantly impacted by all of this.

Access to a complete development team: It takes a lot of work to build, implement, and maintain a complete ad tech stack. That responsibility may be lifted off of you by a header bidding partner.

Access to extra advertising technology: In order to fully benefit from header bidding, you'll need additional software, even though open-source header bidding platforms will provide some basic capabilities for managing your ad inventory. Header bidding partners provide you with direct access to the years-long development of technology.

Deficit

Fees: The majority of header bidding partners take a 10%–30% cut of the money you make from ads they assist you with. Publishers who charge more than 10% often allow you to make a larger profit overall. As such, you should think about your revenue share as well as your earning potential. There is no startup charge to join Snigel as a publisher; instead, they get a 20% income split. By moving to Snigel, publishers may increase their ad income by an average of 57%.

Lock-in clause: If you break a yearly contract with one of our header bidding partners, you will be fined heavily. If you locate another partner who can help you increase your income, this becomes an issue. There are no lock-in terms while using Snigel. With Snigel, you may test it with as little as 5%–10% of your traffic and stop using it anytime you'd like.

Requirements for Entry: Almost all header bidding partners want that your content be unique and free of automated traffic. Most also have minimum income or traffic standards. Snigel works with publishers for at least $50 a day (see our FAQ page for more details on our roster of clients).

Any publisher without the resources or technical know-how to handle a complicated header bidding stack on their own need to collaborate with header bidding partners.

What qualities need to a header bidding firm have?

The following are the most important things to think about while choosing a header bidding company:

Are their items meeting your needs? While some merely provide header bidding, others provide extra features like video advertising, consent management, programmatic agreements (see this case study), and the capacity to show advertisements without user approval.

Do you find their business model effective? While some companies focus more on plug-and-play solutions, others provide full-service consulting to their clients. Who are your favorites?

What are your website's top priorities? For instance, an ad tech company could just be concerned with profits. The second could be more concerned with site performance and user experience. The latter is shown by the degree to which the business makes an effort to assist you in achieving high Core Web Vitals scores and resolving First Contentful Paint (FCP), Cumulative Layout Shift (CLS), and First Input Delay (FID) problems. well-prepared.

What terms do they have for payments? This is the significant one. What is your requirement for cash flow? While some corporations pay a minimum of 30 days, the majority pay a net 90 days.

What is the quality of their service? Make sure the individual handling your ad operations gets a solid team! This may have a significant impact as a skilled ad operations professional will understand when and when to deploy interactive vs video units, among other things. They will also upgrade your ad stack with new features like third-party cookie settings and keep testing for improvements on your behalf.

Do you share their company's values? others concentrate on performance, others on service, and still others on both.

Commonly Asked Questions

What are header bidding's benefits and drawbacks for publishers?

Advantages

raise the amount of money. The main advantage for publishers is that their revenue is more than that of AdSense or Waterfall systems. This AdSense income calculator will help you estimate the potential earnings from header bidding for your website. A 30% to 70% rise in income is not out of the ordinary, and some publishers have had much greater increases. This header bidding case study contains information on a real-world scenario.

Greater command. Selecting which Demand Partners to include in their headline bidding auctions is up to the publishers. Because a publisher may choose the ideal ad network, SSP, and exchange for their website, the quality of the ads is improved.

greater rivalry. In order to outperform one another and get impressions, advertisers must spend more. Greater competition and a higher CPM result from more purchasers. Consequently, website owners get more compensation for their ad placements.

Simple to control. You won't have to worry about maintaining your own solution or handling upgrades if you're collaborating with a reliable header bidding or AdX partner.

more exposure for sponsors. Compared to the previous RTB waterfall auction, buyers have a higher chance of winning premium inventory since they can view the publisher's inventory up for grabs.

Deficit

The majority of publishers need help with implementation. It is undeniable that header bidding involves complicated technologies. Nonetheless, a lot of ad tech companies, such as Snigel, have devoted their efforts to streamlining and enhancing the technology so that publishers don't have to.

Duration of page load. While it varies based on the publisher's solution, Core Web Vitals is a typical worry for publishers wishing to employ header bidding. Page load performance is not harmed by header bidding systems like Snigel's AdEngine, which employ asynchronous loading.

It can take many weeks to see the results. Some publishers may experience an income loss at first. A competent header bidding business will, however, enhance performance by bringing on more stringent partners and designing a unique configuration for the publication.

Header bidding began when?

In order to address the drawbacks of the Real-Time Bidding (RTB) waterfall technique and to offset Google's market advantage, header bidding was created in 2014. To put it another way, Google's ad servers prioritized its own exchange, which reduced advertiser risk and publisher income. The programming method was not often referred to as "header bidding" in its current form during the first year of use. Various sellers termed it different names, such parallel auction, tagless, pre-bidding, and full bidding.

After AdExchanger published a piece in 2015 discussing header bidding's ascent, the phrase gained traction. Having a single nomenclature made it simpler for publishers, marketers, and providers to interact and put ideas into action, which resulted in improvements across the sector. Consequently, header bidding acceptance grew quickly.

Header bidding wrapper: what is it?

A little JavaScript script that is included into the header of a publisher's website is known as a header bidding wrapper. It offers guidelines for effective Real-Time Bidding (RTB) advertising auctions as well as access to many ad demand partners. Without modifying the website code, header bidding wrappers provide publishers the flexibility to add or delete ad demand sources. The wrapper also calls on ad requisition partners to submit bids and enforces timeout settings (the frequency of bidder responses).

The publisher would have to manually swap out the outdated header tag for a new one each time it was changed if header bidding wrappers weren't in place. Publishers also have to update the website with unique tags for every demand partner. All things considered, the Header Bidding Wrapper offers a productive framework for organizing an ad auction.

What distinguishes server-side header bidding from client-side header bidding?

The first header bidding systems generated a client-side (within the user's browser) auction and solicited bids from various sources of ad demand. But as the number of SSPs and advertising exchanges grew, the auction was postponed. The purpose of Server Side Header Bidding (S2S) is to address this delay.

Auctions may happen outside the user's browser thanks to server-side header bidding. As a result, there are fewer ad calls going to and from the website. Rather, following a call to an external server, the auction is held. The user experience is enhanced by server-side header bidding, which reduces processing power requirements and speeds up page loads.

Prebid.js: What is it?

Xandr (previously AppNexus) developed the well-known open-source header bidding engine Prebid.js for the web, which lets publishers handle several ad requests and define line items using a single ad server. Demand sources and analysis adapters are included in this. It is compatible with numerous ad servers, GDPR, common ID systems, and currency conversion.

Ad tech developers may employ Prebid, a sophisticated tool.

Advantages of Prebid.js

Prebid.js is available for free and is open source. If you are proficient in programming and ad operations, Prebid.js may assist you in avoiding revenue sharing with outside parties.

Community and resources. Though Prebid.js lacks official support, it has a helpful community that may answer your issues.

Analytics availability. The system tells you what is functioning well and whether there are any partners that you can collaborate with right now.

Harmony. Prebid.js is appropriate for publishers that want both desktop and mobile functionality.

Quick auction. Header bid auctions with Prebid go quickly and include more than 300 bidders.

Cons of using Prebid.js

intricacy. Prebid.js installation and setup need advanced technical skills. You can't utilize it without outside assistance if you don't have the time or an ad ops staff to handle installation and upkeep.

slow pace at which pages load. By conducting a header bidding auction on the client side, Prebid.js effectively increases user latency while decreasing page load times.

not a specific support group. While asking questions on a forum or among others with similar setups might be beneficial, there are situations when you want professional assistance for your particular requirements.

There isn't a demand source involved. Prebid setup is just the beginning. Additionally, you will need to register accounts with many SSPs.

Not every publisher is suitable for header bidding integration without the help of a third party, given the intricacy of setting up and maintaining the Prebid.js wrapper. Make sure you have the necessary resources before determining whether Prebid.js is the best long-term option for you.

What is Amazon Publisher Services, or APS for short?

In an effort to rival Google, Amazon created its own programmatic advertising technology, known as Amazon Publisher Services. Transparent Ad Marketplace (TAM), Unified Ad Marketplace (UAM), and Shopping Insights are among the services offered by Amazon Publisher. Header bidding services are the foundation for both cloud-based TAM and UAM systems.

How does header bidding on Amazon operate?

One of the most well-known brands in digital advertising is Amazon. Publishers have two options for participating in Amazon's header bidding program: the Unified Advertising Marketplace (UAM) or the Transparent Advertising Marketplace (TAM).

TAM is a server-side bidding system designed for big, reputable publishers who have personal connections to SSPs. For transparency's sake, Amazon TAM customers may examine reports on all auction records, which let them examine CPMs, winners, and bids for every impression.

On the other hand, SSPs that collaborate with Amazon and medium-sized publishers are the target audience for UAM services. There is also a large array of reporting tools available to UAM users. Reports on bid requests, impressions, and revenues are among the services provided by Amazon.

Google Open Bidding: What Is It?

Google created its own open bidding system in reaction to header bidding. With real-time, server-to-server bidding, open bidding enables you to allow external demand partners to contend for your inventory in a single auction. Ads Manager's Open Bidding feature also streamlines payment, reporting, and trafficking.

How does Open Bidding on Google operate?

Through a "server-to-server" (S2S) connection between publishers and their demand partners, Google Ads Manager manages requests for open bidding. The ad manager conducts an integrated auction to ascertain the optimal yield after the generation of an ad request. This makes it possible for outside demand partners to fight for your goods in real time.

Are Advertisers Benefiting from Header Bidding?

Advertisers as well as other members of the programmatic ecosystem benefit from header bidding. header bid: Higher-quality spots are made available to advertisers, which is advantageous. Furthermore, header bidding increases marketers' reach by exposing them to a wider target audience.

For marketers, header bidding offers the following primary advantages:

Exemption from arbitration. Whether they utilize AdX or not, all advertisers are equally likely to get high-quality ad impressions. Everyone is able to access it equally!

maximum openness. Advertisers using header bidding have access to a publisher's whole inventory, allowing them to see what's offered and at what cost. Advertisers used to be limited to seeing inventory that was made available to them during the waterfall auction procedure.

Better list. Advertisers may bid on premium inventory if they all place high enough bids.

Less disparity exists between reported and real perceptions. When a bid is accepted, Google Ads Manager logs the impression; Header bidding partners only log impressions upon the delivery of the creative. Header bidding offers a more precise impression count as a user may exit the page before the creative loads.

In summary

In 2024, header bidding will be the best option for publishers looking to monetize their websites. Header bidding is likely to boost your earnings even more if you're monetizing your website using AdSense or AdSense substitutes.

With more than a decade of expertise in header bidding and digital monetization, Snigel's team of professionals is well-equipped to address any inquiries you may have. To get a free evaluation, get in contact.