CMFBAI.COM – Maximizing Ad Revenue with Header Bidding. The subject of making money online seems to be infinite and broad. Of course, displaying digital advertising on publishers’ own platforms is the most common.
The topic of initiatives to boost revenue from ad network impressions is usually a hot one. Even a new name or method of boosting it exists.
The use of header bidding has become popular as a way to increase online revenue. And what exactly is header bidding? Why it’s crucial to optimize header bidding.
One of the numerous ways publishers are attempting to increase income is by maximizing ad inventory via header bidding.
According to reports, supply and demand are driving up adoption. A growing number of ad tech businesses are developing products around it and partnering with publishers who are constantly looking for new revenue streams.
Applying header bidding to increase ad income.
Header bidding: What is it? A sophisticated programmatic advertising strategy that can replace the Google waterfall method is header bidding. Although header bidding is not a novel method of serving ads, it can benefit publishers and advertisers.
This approach is viewed as an “existential danger” by Google. However, the header bidding technique is frequently cited as the primary means of raising advertising revenue.
How does the ad bidding work? (non-header bidding)
It can be required to first comprehend how the standard ad serving process functions in order to properly comprehend how the header bidding process operates (with the waterfall method).
For instance, an ad server will access your website. In general, programmatically sold options will be subordinate to the ad inventory that you sell directly.
Unsold inventory is first given to the top-ranked ad exchanges when the available inventory is supplied by an ad server (such as Google DoubleClick).
The remainder is then transferred to the second ad exchange, and so forth. Size typically determines this order, although the biggest isn’t always the one prepared to spend the most.
If the inventory doesn’t immediately go to the highest bidder, this will result in decreased total revenue for publishers.
Sites utilizing Google DFP have settings that permit them to use Google Ad Exchange to outbid the highest bidder by one cent for the remainder of the process (AdX).
Ad Exchange is in a position to win the majority of these auctions because they place the final bid.
Publishers believe that “Google’s intervention” prevents them from earning as much money as they otherwise would.
How does header bidding work?
It should be noted that to implement header bidding, you may need large minimum traffic. Some sources from websites that focus on programmatic require at least a minimum of 50 million pageviews to implement header bidding.
- Header bidding allows publishers to bid simultaneously from all bidders.
- This is the opposite of the waterfall or sequential method as used by Google in the explanation above.
- The header bidding method places several lines of javascript code inside the website. And when the page loads it then reaches all SSPs (supply-side platforms) or ad exchanges.
- Publishers can even choose to allow the winning bid to compete with prices from direct sales.
Some advantages that publishers receive through header bidding include the following in addition to maximizing ad revenue:
Enhanced control
Publishers can choose which sources have the opportunity to participate in the bidding process through header bidding, which entails all demand sources competing simultaneously. having actual control over their website. Additionally, publishers can exercise this influence by giving particular advertisers the highest priority in the auction, which might persuade advertisers to keep doing business with their preferred publishers.
A rise in revenues.
The publishers’ major objective in introducing header bidding is to achieve this. They can raise the price they charge for premium products by using header bidding. Some publishers have seen a 30–50% boost in revenue.
Increased yield
- Because more intelligent impression allocation and higher fill rates are made possible with decreased reliance on a single SSP, the overall yield rises.
- fewer discrepancies in the reports.
- There is no waterfall in header bidding because it is a single auction that takes place across many partners at once, which greatly decreases reporting inconsistencies.
- Header bidding benefits marketers as well.
What advantages do marketers have from utilizing this header bidding technique?
Disintermediation.
Regardless of whether they use AdX or not, all advertisers have a decent probability of getting the greatest inventory (ad slots). This is so that everyone has access to the same opportunities.
Better Inventory and Transparency.
Advertisers can access all publisher inventory through header bidding, allowing them to see what is offered and at what cost. Then, if the advertiser really wants that premium inventory, they can place a high enough price.
Constraints for implementing header bidding
There are difficulties with header bidding. There are advantages and disadvantages, just like a coin with two sides.
Extended Latency
Google vehemently dislikes header bidding techniques that add delay to websites utilizing them. However, Google’s critics make a different case. Comparing header bidding to Google’s waterfall approach, latency has actually decreased.
Increased Publishing Work.
- Increased Infrastructure Expenses: The potential increase in infrastructure costs for SSPs/DSPs is a further disadvantage of header bidding.
- They may now be able to see the same impression twice, which increases the demand on their servers.
- Header bidding has emerged as a desirable tactic in the ongoing push to improve transparency and control over ad data and impressions.
Although this approach can still be debatable at this time. But because they believe it would enhance their revenue and yield, more and more publishers are beginning to accept it.
