How Header Bidding Useful for Website Publishers

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How Header Bidding Useful for Website Publishers

How Header Bidding Useful for Website Publishers

Web Publishers wish to maximize their revenue by selling their ad inventory in a way that ensures they get the best price. One way to achieve this is by using programmatic advertising. Ad Tech. short for advertising technology is a part of publisher revenue strategy that works discreetly in the background.

For example, when you visit a
website or app, the web page loads. Next, Ad Tag (a snippet of HTML code in the
webpage) triggers a call to the website publisher’s ad server with ad request.
The publisher’s ad server analyzes user’s (your) data and makes a request to
either an ad exchange or ad network.  Once
the winning bid is picked, this info is passed back to the publisher’s ad
server. The winner’s ad is shown in the ad space of the website you just
visited. All this happens in just a few milliseconds without you even being
aware of it. While this strategy is mostly successful, sometimes publishers miss
revenue opportunities when there are no takers for their impressions from the
chosen ad network/exchange.

Header Bidding Solution: What
it is and why it matters

Header bidding is an important advancement in ad tech which uses scripts in the page header. The header of a web page is the portion which loads first and header bidding is an auction that takes place in the header in collaboration with multiple ad networks and exchanges. Using this technique, bid requests are sent simultaneously to all the demand partners (both direct campaigns and programmatic). This puts all demand partners on an equal footing and helps to get the best bid for an impression. This leads to significant increase in revenue for publishers.

How Header Bidding maximizes
ad revenue

Header bidding offers the
following benefits:

  • The
    best price for advertising space:
    Header
    bidding exposes ad inventory to a greater number of advertisers and makes
    auctions more competitive. This pushes up CPM (Cost per Thousand Impressions) rates
    and causes more ad spaces to be filled. Header bidding ensures that the
    publisher gets the best offer for an impression.
  • Income
    diversification:
    When
    publishers work with more partners, their income sources are diversified and
    this helps to overcome the risk of over-reliance on a single partner.
  • Scale
    solution on demand:
    The
    decision logic for picking bidding partners is implemented in a container known
    as wrapper. This enables publishers to easily add or remove partners and scale
    their solution.
  • Transparency:
    Publishers can analyze and compare the performance of each ad request using
    log-level data and work on tweaks to maximize yield.
  • Improve
    website load time:
    Since the
    auction is conducted with multiple partners simultaneously and within a cut-off
    time, it decreases the time to render the ad and improves the user experience.
  • In-app
    header bidding:
    Even though, mobile app
    advertisers have been slower than their web counterparts to adopt it, header
    bidding offers them the same opportunity to increase revenue streams.

Key Takeaway

Header Bidding plays
a large role in Ad Tech. by bringing significant advantages to both publishers
and their counterparts not only in web advertising but also in the mobile space.
 Header Bidding helps publishers reach
revenue goals while sustaining the positive synergy of the overall Ad Tech ecosystem.

About Us

As a leading provider of digital publishing solutions, diacriTech not only uses emerging technologies but also programmatic advertising to create websites and the best possible user experiences.  For any further queries, please contact marketing@diacritech.com.

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