Online advertising: The “header bidding” innovation


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The “header bidding” technology is now disrupting the way publishers used to manage the filling of their advertising inventory.

The old “waterfall” system

All publishers’ aim is to fill in their advertising spaces as much as possible in order to optimize their revenues.

100% fill rate means that there will always be an ad in a given space. The ad can be seen by every single visitor, wherever he/she may come from.

To make sure all the spaces are filled, publishers must have as much partners as possible. Then, they classify them using an « ad server », giving priority to the best purchasers.

The first ad prints (1 ad print = 1 ad posting) are the most popular given that they benefit from an optimal visibility. Buyers are therefore ready to pay more for their ad to be seen in the first place.

 

The innovative “header bidding” technology

With the advent of programmatic technologies (automatic purchase of ad spaces through virtual platforms) and RTB (real time bidding), the prices for each network have become fluctuating.

In order to enable publishers to maximize their ad revenues, the « header bidding » technology has been created. It puts the advertisers (our partners) in competition in real time. They can all participate and bid-up. Accordingly, this competition results in the best ads being bought at the highest price.

In other words:

à In the old waterfall system, a first purchaser came to buy the best ad spaces at a good price. A second purchaser came to buy the other spaces at a medium price, and then a last purchaser came to buy the last ad spaces at the lowest price.

à In the new “header bidding” system, all purchasers participate in the bidding. The best ad spaces will automatically be bought at the highest price, thanks to the competition in place between the different partners. All the remaining ad spaces will also be bought at the highest possible price until there is 100% filling.

 

A pretty complex technology for small and medium websites publishers

However, the « header bidding » system is not easy to use for a publisher alone.

– First of all, he/she must integrate a computer code (advertising script) given by each ad platform, to his/her own « header bidding » script. It is a technical process that very few websites publishers are capable to set up if they have no specific computing skills.

– Then, some ad platforms are not “header bidding” compatible and cannot  bid up with the other partners to buy your advertising spaces.

– Furthermore, some small and medium websites are less moneymaking mostly because of their niche audience. Therefore, their editors have more difficulty interacting with these huge advertising platforms.

An easy solution to use “header bidding”?

If you’re looking for an effective and easy way to boost your advertising revenues, you should consider the “header bidding” solution, and subscribe to our platform!

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