Header bidding is a method of integrating multiple demand sources into the ad serving process of a website. It allows ad exchanges, supply-side platforms (SSPs), and demand-side platforms (DSPs) to bid on inventory (i.e., ad impressions).
The goal of header bidding is to allow publishers to maximize their ad revenue by giving more demand sources the opportunity to bid on their inventory, and to allow advertisers to bid on a larger number of impressions. It can also improve the user experience by reducing the number of ad calls and latency on the page.
Traditionally, when a user visits a website, the ad server sends a request to the ad exchange to fill an ad slot on the page. The ad exchange then selects an ad from its inventory and sends it back to the ad server to be displayed on the page. If the ad exchange doesn’t reply with an ad, the exchange sends the request to another ad exchange until an ad is delivered. This is known as the "waterfall" approach, because it involves a sequential process of filling ad slots.
The waterfall setup works in the following way:
With header bidding solutions, the process is slightly different. It does not send a request to the ad exchange, instead it works in the following way:
Google AdSense is a program that enables website owners to display ads on their site and earn revenue through clicks or impressions. Header bidding, on the other hand, is a technique used by publishers to increase revenue from their ad inventory by allowing multiple ad demand sources to bid on their inventory simultaneously before making a final decision on which ad to display.
In other words, AdSense is a program that provides ads, while header bidding is a technology used by publishers to maximize revenue from the ads they display. The main difference is that AdSense is a product offered by Google, while header bidding is a technique that can be used with or without AdSense. Another important difference is in the reach of the respective solutions. If Google AdSense is described as a small pond, heading bidding would be an ocean.
Overall, while both header bidding and Google AdSense can be effective methods of integrating ads into a website, header bidding may be a better option for publishers who want to maximize their ad revenue, improve the user experience, and have greater control over the ad buying process.
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Header bidding is a technique used by publishers to increase the yield on their advertising inventory. It involves allowing multiple demand sources (ad exchanges, SSPs, and DSPs) to bid on ad impressions in real-time, before the ad server makes a decision about which ad to display.
Traditionally, the ad server would make this decision based on a hierarchy of priorities, with the highest bidder getting the ad spot. With header bidding, all demand sources are able to bid on the ad impression simultaneously, leading to a more competitive process and potentially higher ad prices for the publisher.
Header bidding can be implemented using either a first-price or a second-price auction model, depending on the preference of the publisher. Some publishers may choose to use a first-price auction because it allows them to maximize revenue by capturing the full value of the winning bid, while others may prefer a second-price auction because it can lead to lower effective CPMs (Cost Per Thousand impressions) for advertisers.
Header bidding and open bidding are both methods of integrating multiple demand sources into the ad serving process of a website. However, there are a few key differences between the two:
Overall, both header bidding and open bidding can be effective methods of integrating multiple demand sources into the ad serving process, but they differ in terms of timing, the bidding process, and implementation.
Here's how a header bidding wrapper works:
The goal of a header bidding wrapper is to simplify the process of integrating multiple demand sources into the ad serving process and to allow publishers to more easily manage and optimize their header bidding setup.
Google has deemed header bidding as an ”existential threat” internally. However, it is not without its flaws and there are a few potential disadvantages for publishers: