- Header bidding is a programmatic technique that allows publishers to offer their inventory to multiple ad exchanges at the same time, before making ad calls to their servers.
- This is the opposite of what happens when a publisher sets up a waterfall, which involves a chain of ad networks each being offered the same impression in turn. The problem with waterfalling is that if a bid later in the queue is higher than the accepted one, publishers lose out on revenue and fail to maximize the value of each impression.
- Header bidding, on the other hand, is designed to flatten the waterfall hierarchy. The ad call is sent out simultaneously to all bidders in an auction and the highest bidder wins.
- This means that publishers can access more demand and increase their fill rates, while buyers can access more inventory and unlock more chances to reach their target audience.
What is Header Bidding?
How does Header Bidding technology work?
- The process goes like this: when a user visits a web page, the header tag connects the user to multiple ad networks (exchanges, SSPs, DSPs). The ad networks place their bids, and the winning bid is returned to the user, who passes the bid to the publisher’s ad server.
- The publisher’s ad server then redirects the user to the advertiser’s server, which returns the final creative. All of this happens within a few fractions of a second.