In today’s competitive advertising landscape, publishers might need to jump through fire hoops to increase revenue. Not to mention that traditional ad-selling methods are often daunting, but there is no need to stress out.
Luckily, as the technology progresses, multiple options, such as the Header Bidding solutions, are on the market.
As a result, we created a comprehensive guide to header bidding solutions for publishers to explore everything there is to know, starting with this emerging concept and then discovering the many types and how each solution could help increase revenue.
So, let’s jump in!
Table of contents
What Is a Header Bidding Wrapper?
Header Bidding is a monetizing method in which publishers sell their inventory and ad impressions within their website or app by collecting multiple bids from different demand sources. This approach is an alternative to the waterfall method, which will be discussed later.
For now, it is essential to understand that Header Bidding is a Programmatic Advertising method in which sellers offer their ad impressions to multiple demand platforms, such as ad exchanges, ad networks, demand-side platforms, and supply-side platforms, simultaneously through real-time auctions.
As a result, there is increased competition, besides the potential high revenue such methods impose.
Furthermore, it’s essential to understand that not all Programmatic Advertising solutions involve Header Bidding. Companies like Sevio offer Real-Time Bidding solutions, the core component of the programmatic niche, and part of the Open Real-Time Bidding protocol.
What is striking is that in October 2023, 1M large traffic websites, 3.3%, were using Header Bidding technologies, which also applies to 10% of the top 100,000 websites and 15% of the top 10,00 platforms.
So, these key insights give us a glimpse into the future of advertising and Header Bidding wrappers.
How the Header Bidding Wrapper Works
Header Bidding, advanced bidding, pre-bid, or pre-bidding works based on a JavaScript code snippet implemented within the header’s page and signals all demand platforms to bid on it before ad servers.
As each demand platform, whether a DSP, SSP, Ad Exchange or Network, places its bid, the Header Bidding collects them and chooses the highest-paying one within a predetermined time frame. Usually, the process takes up to milliseconds.
Once the selected bid is passed to the publisher’s ad server, the server retrieves the advertiser’s creatives, deliverables, or ad content. Indeed, many actions occur within split seconds, yet everything is done automatically. So, it is essential to understand that all sources simultaneously participate in the auction.
Also, to get a more in-depth view of how it works on mobile, our in-app header bidding guide sets you up for success.
The Header Bidding Vs. The Waterfall Bidding
The Header Bidding technology is an upgrade to the waterfall bidding process, whereby the ad inventory is only sent to one demand source at a time.
Moreover, the highest bid should be above the publisher’s floor price; consequently, the ad inventory is sent to the following demand source. As you guessed, this method is done repetitively until the inventory is sold, and as you all think, it is a time-consuming process.
Additionally, this legacy bidding method imposes some downfalls:
1. Missing Revenue Opportunities
Since the bidding is chosen based on considering the next highest bidding price above the floor price set by the publisher, many opportunities are lost because the inventory is sold before it reaches it. So, missing potential revenue is one big pitfall, yet it also depends on different factors such as demand sources, floor prices, and competition.
2. Lower Revenue
Another aspect is that the ranking system is usually determined by the size of the network rather than the incentive that an advertiser pays for a bid.
3. Slow Loading Speed
The more demand sources a publisher sends its ad inventory, the longer it will take to load. That’s why Header Bidding improves all these pain points. It creates an open auction where multiple demand sources bid simultaneously on the same ad inventory. This method caters to price competition, thus leading to increased revenue.
The Location of the Auction
The workflow can occur on the server-side or client-side. A publisher could choose based on its business strategies and preferences. Also, explore practical multi-bidding strategies that work with Prebid and server-side setups
But let us explain it in detail.
1. The Client-Side Header Bidding
This process is done within the publisher’s web browser, thus opening up page latency downsides and deprecating user experience due to low computational memory.
Header Bidding demands high memory to process all the data that goes back and forth between publishers, SSPs, DSPs, and other Ad Tech platforms. As such, any publisher would want to keep their loading speed short, which is how server-side Header Bidding was born.
Setting a client-side Header Bidding is more straightforward and doesn’t require much aid or maintenance on the publisher’s part.
2. The Server-Side Header Bidding
As the name says, this request addresses latency issues from a central server. However, a publisher could need more transparency since the auction is done directly on the server. Moreover, the server-side Header Bidding limits cookie matching, meaning the amount of data passed to demand partners is limited, thus limiting the effectiveness of targeted advertising.
Not to mention that the setup could be more complex, raising questions such as whether to purchase a server or utilize third-party cloud services.
5 Benefits of Header Bidding Solutions
- Better Management: Since publishers can oversee and control which sources participate in the bidding, they have increased control, allowing them to prioritize specific advertisers.
- Reach a Broader Advertiser Audience: Publishers should diversify their advertisers and not rely solely on the first option—choosing businesses based on specific factors, such as revenue and adaptability.
- High Ad Quality: Here, the niche and target audience of the publishers come into play. As a result, advertisers who align with the publishers’ target audience will pay a higher price. Additionally, increased competition could result in higher ad quality and relevance.
- Enriched Revenue: Since publishers can simultaneously make their inventory available to multiple advertisers, it increases competition and generates higher CPMs and revenue.
- Faster Loading Speed: Who doesn’t appreciate a website with a faster loading speed? The Header Bidding method reduces the selling time, enhancing users’ experience and improving the website’s overall SEO score.
3 Challenges of Implementing Header Bidding
- Technical Setup: Integrating Header Bidding wrappers requires technical expertise and an understanding of Programmatic Advertising.
- Integration Challenges: You choose a Header Bidding solution, but ensuring compatibility between tech stacks requires constant troubleshooting, which could be costly.
- Limited Control Over Bids: On the bright side, Header Bidding gives publishers more control over their ad inventory. However, they may need more visibility over the bids received, which could limit their strategic options.
As you can see, Header Bidding wrappers have pros and cons, so choosing the best solutions on the market could be challenging. However, by reading further, you can discover multiple types of wrappers, along with tips on choosing the Header Bidding solutions that best fit your needs.
3 Types of Header Bidding Wrappers
For all publishers looking to adopt Header Bidding, there are three main types to choose from: open-source, proprietary, and managed wrappers. These wrappers bridge the publisher’s website and different demand sources. Let’s see each other’s offerings and how to use them better
1. Open-Source Header Bidding
The open-source Header Bidding wrapper is a free solution usually built by a community of dedicated developers. As such, it offers better customization options. Thus, a developer can modify the JavaScript code to their liking and for their business needs.
One such solution could be Prebid.js, a free, open-source JavaScript library for publishers supported by an increasing number of vendors. Moreover, Prebid.js offers pre-built adapters and APIs for various networks; however, as you might expect, it requires advanced technical knowledge, which can be costly.
So, this Header Bidding solution may not be suitable for an independent publisher with limited financial or coding resources.
2. Proprietary Wrapper
This type of Header Bidding wrapper is pre-built, closed-source, and owned by different SSP and Ad Tech platforms. It is offered as services or paid licenses. As a result, you can understand that such an option lacks transparency and independence and comes with specific requirements, such as target monthly traffic, content types, and others.
Indeed, since they are pre-built and pre-configured, these solutions are easy to use, especially compared to open-sourced ones. One example is Index Exchange, which offers cross-chain monetization, focusing on Ad Exchange quality and maintaining a demand relationship with leading agencies.
3. Managed Wrappers
Managed Header Bidding wrappers are designed explicitly for publishers without technical knowledge who want better customization options. They are often built on Prebid libraries. As such, publishers can enjoy complete transparency and other added benefits from third-party providers, such as dedicated account managers and support implementations.
A managed wrapper solution could be PubMatic, which offers additional features, such as A/B testing, in-depth analytics, and an identity management tool, built into its wrapper.
Bonus: RTB, A Header Bidding Alternative
If Header Bidding isn’t your top choice, we have an alternative solution for your business. However, let’s take a broader perspective. As Programmatic Advertising, Header Bidding, and Real-Time Bidding are all part of a wider concept, some key aspects must be clarified.
Header Bidding is a subset of the RTB, based on the Open RTB protocol, a subset of Programmatic Advertising.
The RTB is a mechanism for buying and selling ad impressions through auctions, just like in Header Bidding, since it’s part of it.
Moreover, it’s called real-time because it starts as soon as a user leads the webpage and ends in milliseconds as the ad is delivered after the page is loaded. The term bidding showcases that multiple advertisers are placing their bids simultaneously.
Even though this alternative takes the bids individually, instead of Header Bidding, it offers multiple benefits that could interest publishers. First, implementing RTB is simpler than Header Bidding, which requires technical knowledge or a developer. Then, it solves the inefficiencies of selling inventory in bulk to multiple Ad Networks.
A top option is Sevio Ad Manager, which offers an RTB solution that uses the Open RTB protocol to provide real-time ad impression auctions. While it’s not the same as Header Bidding, it could be a more straightforward way of managing and selling their ad space, thus maximizing their revenue.
How to Choose a Header Bidding Solution That Fits Best
When selecting the best Header Bidding wrappers, it is crucial to consider the following key aspects.
- The Header Bidding Type: Great customization, but techy; pre-built, but expensive, or managed? Each type has its pros and cons, so choosing the best requires careful consideration.
- Publishers’ Budget: As discussed, open-source wrappers are free but require costly implementation resources; proprietary ones are licensed or service-based, and managed ones may require additional fees for usage or impressions.
- Additional Features: It is essential to analyze whether the chosen Header Bidding platform offers additional features, such as A/B testing and analytics. Of course, these are the only aspects of choosing the best solution for your business needs, as a balance between them is required.
FAQ
We cannot say whether Header Bidding is good or bad, as it offers a unique way for a publisher to increase revenue. Indeed, it may have various downfalls, such as requiring additional technical knowledge, but it comes down to each publisher’s goals.
Depending on the type of Header Bidding chosen, a publisher may be required to pay additional costs. Suppose publishers are choosing a free, open-source wrapper. If they lack the technical knowledge to implement the solutions, hiring a developer to implement the resource may be necessary.
There isn’t a good or bad platform for Header Bidding; it all comes down to a simple, cost-quality report. As such, the publisher must analyze each product’s offering in relation to its business goals.
The main benefit of a Header Bidding strategy is to increase a publisher’s revenue by collecting multiple bids from different demand sources.
This process might vary depending on the chosen type of Header Bidding wrapper since open-source is free, but you must manage it, and the rest are from 3rd party vendors, whose customer service department can work.
Final Thoughts
By now, we’ve learned more about the Header Bidding wrappers and how they change how publishers monetize their inventories. While multiple solutions are available on the market, each has advantages and disadvantages, so it is mandatory to choose one based on careful consideration.
Was this helpful?
