If you’re a publisher, you may be wondering what the difference between Header Bidding and Open-Bidding in Online Ads is. Open-Bidding is the most common form of online ad auction, which is run on Google’s servers. This process is completely separate from header bidding and uses a system known as S2S integration. Open-Bidding is different because it allows publishers to control the ad requests placed on their websites.
The concept of header bidding helps publishers maximize the eCPM of their online ads by eliminating passback and the wasteful practice of losing an impression. Header bidding also reduces latency and boosts fill rate, as multiple demand partners bid on the same impression. Publishers also have more control and freedom when it comes to bidding because they can choose the ad space best suited to their customers’ needs.
Most publishers will not be happy with a low fill rate. High eCPM doesn’t mean that the inventory is monetized properly or that the demand partners are relevant to the inventory. Some publishers are willing to compromise on eCPM in order to fill ad placements. Using a feature called Ad Balance, the algorithm tries to fill 100% of the available impressions.
Using data to target specific audiences increases eCPMs in online ads. Apps that collect user data, such as gender, age, and location, earn 87% higher eCPMs than those that don’t. This information helps advertisers craft personalized messages tailored to their audience. This is one of the primary reasons why in-app and mobile advertising are so important. App publishers should take advantage of this data and make the most of this demand. For instance, the Smaato platform analyzed data for music apps, and found that those that included gender, age, and location data saw their eCPMs increase by 200% and 155%, respectively.
The effectiveness of header bidding depends on the quality of the inventory being sold. It is more expensive to advertise a product or service that has poor eCPM than a similar product that has a high fill rate. For instance, a popular app receives 1 million ad impressions per day. Even a small increase in eCPM can add up to $100 to a day or $3,000 to a month. So, it is worth optimizing the monetization strategy for higher eCPM.
One way to increase ad revenue is by offering header bidding. Header bidding works in a similar way to ad exchanges, but it bypasses Google’s ad server and DFP and forces both to compete directly for the same inventory. As a result, Google has begun to create its own header bidding technology. This technology is an important tool for publishers because it allows them to increase fill rates while selling ad space on a per-impression basis.
The method of header bidding is fairly new. A publisher can connect to multiple header bidding partners simultaneously, including ad exchanges and SSPs. Each header bidding partner is involved in a separate auction and reports their value to the publisher. The publisher observes individual revenue generated by each header bidding partner and chooses the highest bidder. By utilizing header bidding, a publisher can maximize their revenue by offering a wider selection of ads.
In addition to increasing click-through rates, header bidding also increases latency. The slower the page loads, the higher the price of the impression. This increases competition for the inventory and drives the price up. As a publisher, you can limit the number of bidders to five. As a result, you can expect to fill at least 80% of ad requests. However, it is important to remember that header bidding is more complicated than open bidding. If you are still unsure about which type of header bidding is best for your website, please consult your vendor.
To maximize header bidding, publishers should set up a continuous testing program. A proper header bidding setup will allow publishers to increase revenue without compromising on quality. Header bidding has many advantages for publishers alike. By controlling the number of bids, publishers can maximize premium inventory prices. Further, header bidding reduces the risk of sequential chaining and increases ad fill rates. So, what should you do?
Header bidding allows publishers to control which demand sources they wish to target. You can prioritize certain advertisers in the header bidding auction. This allows you to boost the price of premium inventory and increase the fill rate. The benefits of header bidding include an increase in fill rates and less reliance on a single SSP. In addition to increasing yield, header bidding can help publishers get more control over their inventory. So, head over to a header bidding platform to get started.
Reduces infrastructure costs
In addition to improving the advertising process, real-time bidding can help reduce the amount of money advertisers pay for advertising. This is because real-time bidding is not about finding the cheapest inventory, but rather about bidding for slightly more expensive inventory. In real-time bidding, advertisers’ bids are not affected by inflation, which traditionally has baked the costs of the underlying technology into the CPM (cost per mille) price. This can also benefit agency-type businesses, which often pass on the costs to their clients.
Gives publishers more control over ad requests
Header bidding technology enables publishers to manage multiple demand partners and bids on their own ads. This type of solution allows publishers to regulate bids, add or remove demand partners, and make sure that all bids are made on the same metrics. It also grants publishers greater transparency and control over the ad requests they make on their website. However, publishers need to be aware that header bidding can negatively affect the user experience.
Publishers can now control the number of ad requests they receive and who wins them. This method also increases transparency for advertisers and DSPs. The ad server awards space to the source with the highest bid based on qualifying data. This technology is becoming increasingly popular, and is expected to increase publisher revenue and inventory by over 60% by 2021. Header bidding can give publishers more control over ad requests, improve transparency, and enhance their revenue.
The implementation of header bidding can result in an increase of revenue of up to 70% for publishers. Header bidding helps publishers increase premium inventory prices and avoid undercutting them. With this technology, publishers can also increase ad fill rate and improve their smart allocation of impressions. Header bidding also reduces the need for reporting discretions and sequential chaining. It is the most effective way to optimize revenue.
Because header bidding eliminates the need for passback, it reduces latency and wastefulness of lost impressions. With header bidding, publishers can sell their ad space on a per-impression basis, increasing fill rate and decreasing latency. With header bidding, publishers can also manage multiple demand sources in the same account and boost their CPMs. These features are essential for publishers looking for more revenue opportunities and greater control.
With header bidding, publishers have the ability to make their ad inventory available to multiple ad networks and DSPs at once. The ad server compares bids and serves the campaign creatives to the highest bidder. Increasing competition and transparency are key benefits of header bidding. If header bidding is implemented in ad networks, it will increase the revenue yield of the publisher and improve its quality score.