Header bidding has revolutionized programmatic advertising by allowing multiple demand sources to bid on ad inventory simultaneously, rather than sequentially as in traditional waterfall auctions. This competition results in higher CPMs, better ad quality, and greater control for publishers. 

Today, header bidding is an essential strategy for maximizing revenue and improving the user experience. 

In addition, the auction enables publishers to present their ad inventory to several SSPs, ad networks, and exchanges simultaneously before involving the ad server. This creates a more competitive and transparent auction, as demand sources bid in real-time for the same inventory.

But let’s dive headfirst into this bidding auction. All puns intended. 

How Header Bidding Works

Header bidding enables multiple advertisers to bid on a single ad impression simultaneously. This process begins when a user loads a webpage, triggering the header bidding script to send ad requests to various demand sources like Supply-Side Platforms (SSPs), Ad Exchanges, and Demand-Side Platforms (DSPs). Each demand source responds with a bid and ad creative in real-time, after which the highest bid is selected and displayed to the user.

The real-time bidding (RTB) process enables advertisers to bid on ad impressions within milliseconds, helping publishers secure the best price for their inventory while allowing advertisers to reach their target audiences effectively.

Behind-the-Scenes Mechanics

Header bidding operates on a system that involves creating HTTP requests, handling bid responses, and leveraging user data for efficient targeting.

HTTP Request Generation and Processing

When a user visits a webpage, the header bidding script sends HTTP requests to demand sources. These requests, typically formatted in JSON or XML, contain parameters such as ad unit size, placement ID, and user data. Demand sources process these requests and return bid responses with a bid amount and ad creative.

Pre-bid and Post-bid Phases

• Pre-bid Phase: The header bidding script sends bid requests to demand sources, collects bids, and runs an auction to determine the highest bid.
• Post-bid Phase: The winning bid is sent to the ad server. Ad Server then updates the winning bid in the analytics and displays the ad on the ad slot using its ad-serving logic.

The Role of User Data

The user data is part of the bidding process, allowing selection of certain audiences based on their characteristics: age, interests, and behavior. Through cookies and pixels, the bid of demand sources can be adjusted according to the relevancy and the revenue. However, acts like GDPR and CCPA permit data and personal information to be handled responsibly and only with permission, data anonymization.

Key Components of Header Bidding

1. Header Bidding Wrappers

Header bidding wrappers are JavaScript libraries that sit on publisher websites and enable them to connect with demand sources like SSPs, DSPs, Ad Networks, etc. They help in orchestrating the entire auction using the below steps.

• Manage the setup
• Bids collection
• Ads creative placement

Popular wrappers like Prebid.js and Amazon TAM are used to standardize and simplify the integration of multiple demand partners.

These wrappers streamline bid requests and ensure that all the demand sources can participate in the auction. By connecting all the demand sources wrappers improve transparency and competition in the auction process.

2. Ad Exchanges and Ad Networks

Nowadays in adtech, it’s hard to differentiate between Ad Exchanges, Ad Networks, DSPs, and SSPs as companies are doing all types of activities. Some differences in the process are still there. Ad Exchanges & Ad Networks aggregate demand and connect to supply.

• They connect various advertisers and DSPs.
• They aggregate the demand and help in facilitating real-time bidding b/w publishers and advertisers.
• The real-time bidding ensures everybody gets the benefits 
  • Advertisers get the best-performing slot for their ads. 
  • Publishers get the best rates for their ad slots.

Ad exchanges and ad networks work hand-in-hand with wrappers to process bids quickly and efficiently.

3. JavaScript Implementation

Header Bidding relies heavily on JavaScript implementation, it executes bid requests and collects responses within the user’s browser. It’s crucial to implement JavaScript to ensure maximum profit.

• Proper optimization of JavaScript ensures more demand sources can participate, maximizing revenue for publishers
• To ensure a seamless auction, enable faster page load time & reduce latency.

Each component of header bidding like wrappers, ad exchanges, and networks interacts through this JavaScript infrastructure, to drive efficient and competitive auctions.

Header Bidding Architectures

Header bidding can be implemented through two primary architectures: client-side and server-side.

Client-Side Header Bidding: In client-side header bidding, the bidding process happens within the user’s browser. It is executed by a JavaScript wrapper. It sends bid requests to demand partners, then collects bids, and auction the ad slot based on bids and predefined configuration using RTB. While this method provides transparency and control, it may cause latency and scalability issues, as multiple requests must be processed by the browser.

Server-Side Header Bidding: Provided the Client Side Header Bidding issues, server-side header bidding was introduced. It uses a server to perform the bidding. The browser sends one request to the server, which then handles bid requests to demand partners and returns the highest bid to the browser. This reduces latency and improves scalability but can reduce transparency and control over the bidding data.

Tools to Check Behind the Scenes of Header Bidding

Developer Tools

• Chrome DevTools: Chrome DevTools is a fundamental yet crucial tool for monitoring and troubleshooting header bidding processes. It allows tracking of bid requests and responses in the Network tab, identification of JavaScript errors in the Console tab, and performance analysis in the Performance tab.
• Requestly: A browser extension that simplifies ad operations troubleshooting. Requestly intercepts and modifies HTTP/HTTPS requests, allowing you to fix malfunctioning ads, simulate geo-targeted campaigns, and test custom ad experiences. It also supports testing Prebid.js configurations in staging environments to catch issues early.
• Charles Proxy: A desktop-based application that works similarly to Requestly. It can monitor and debug HTTP/HTTPS traffic. It includes features like bandwidth throttling, session recording, and request/response inspection.

Analytics and Reporting Tools

• Prebid Analytics Adapter: Built into Prebid.js, this tool sends auction data to analytics platforms and tracks key metrics such as bid responses and win rates. It helps publishers optimize their header bidding strategies in real time.
• Professor Prebid: A specialized tool for Prebid users, providing detailed insights into header bidding performance metrics like win rates and revenue impact.
• Google Ad Manager: Google Ad Manager is widely used by publishers for tracking ad performance, impression data, and auction outcomes, offering a comprehensive view of header bidding activities.

Maximizing Revenue Through Optimized Header Bidding Strategies

Header bidding is crucial when it comes to generating maximum revenue with the help of better ad placements. Knowing how it works, how to make it faster and more efficient, and which tools to use, ad ops professionals can reach its full potential. Staying updated on best practices will be key to maintaining a competitive edge in the evolving ad tech landscape.

The post Behind-The-Scenes of Header Bidding and How It Creates Better Ad Quality for Publishers appeared first on AdMonsters.

Google’s incorporation of prebid is supposed to make ad ops easier by allowing publishers to manage their header bidding relationships through “yield groups.” This will enable publishers to identify some portion of their inventory for Open Bidders to target, and prebid bidders can now do the same.

Ad servers will no longer need to be filled with line items to heighten header bidding demand. Publishers and programmatic executives over at Bustle, AccuWeather, and Cafe Media are all currently testing out this new feature and seem to be in favor. 

This Google Ad Manager prebid link-up does help to eliminate some discrepancies.

“Currently, prebid rounds all the prices before submitting them to GAM, but in the new setup, GAM is reading the price from prebid before prebid has done any rounding,” said Patrick McCann, SVP of Research at CafeMedia and Chair Prebid.js. “You won’t see the rounding errors. You end up with a better auction outcome when people are bidding closely to each other thanks to the rounding effect in prebid.”

Will This Interrupt Pre Existing Header Bidding Set Ups?

It’s looking like it just might. Yesterday on LinkedIn, we saw ad tech vendors questioning CafeMedia’s CSO, Paul Bannister, after he posted about the “bridge to prebid.” 

“There is an existing setup with the orders and line items which publishers are efficiently running and is a proven model,” said Dikshant Joshi, Director of Publisher Development at AdPushup. “While this seems to be a promising tool introduced by Google, there is no proof the performance would be at par or better or less. Google mentions the setup of yield groups (an additional and different setup). Still, the experts in the industry would want to benchmark the performance of the header bidding yield groups before they make a complete move or stick with what they currently have.” 

Google also mentions an offering of a “NetworkMinimumBidToWin” metric that publishers can access via Data Transfer Files. Nonetheless, this is a paid feature with recurring costs, so you know what that means; many won’t be able to access it if they do not wish to pay. 

If “NetworkMinimumBidToWin” were a tool to help publishers and the ecosystem, we would have seen this as a part of standard metrics accessible through APIs and the query/reporting tool.

What Is the Future of Google Ad Manager and Header Bidding?

I have asked the Universe tons of times to provide me with a crystal ball, but until then, we will have to ride the wave to see how this pans out. When we spoke to Dikshant, he mentioned that ad tech is an ever-evolving space, and with this promising change, it will be interesting to see “the actual value it brings against the current set up.”

Although many publishers will have to change their ways of using GAM’s services, others can see the benefits.

“The timeline is easy to criticize since header bidding has had such widespread publisher adoption for so long, but this still feels like a step forward,” said Emry Downinghall, SVP Programmatic Revenue, and Strategy at Unwind Media. “Google publicly acknowledges that +90% of publishers use header bidding, and they are working to support that. If this provides mediation transparency and simplifies setup in GAM, publishers win.”

The post Will Google Ad Manager’s Link-up With Prebid Reinvent the Wheel? appeared first on AdMonsters.

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Not for lack of effort from its arch nemesis, Google. The tag team of Open Bidding (now featuring more of your favorite demand sources) and Unified Auction’s restricted floor controls looked set to deliver client-side header bidding a beating… but interestingly enough, many publishers reported an uptick in their client-side header revenue after the Unified Auction’s launch.

Still, the world is changing fast—and the third-party cookie’s accelerating fade in particular makes us ponder the future of client-side header bidding, even if troubles with ID-matching and a lack of transparency and flexibility continue to mar the adoption of server-side bidding.

I queried Lucie Laurendon—Smart’s Senior Product Marketing Manager and resident header guru—about the future of the header and the cookie crackdown; whether publishers still need header partners on the page; how publishers should evaluate their client-side to server-side demand ratio; and much more.

GAVIN DUNAWAY: What are the most important factors in determining a client-side-server-side header balance? Are there certain monetization priorities that might make a publisher prefer one to the other?

LUCIE LAURENDON: What is the best balance between both? Unfortunately today, too many publishers don’t even ask themselves this question!

They just plug into as many demand sources as possible without being guided by an overarching strategy. Sometimes a little bit of less is more, which can deliver more sustained impact. There is no one “best” solution. For a publisher, the choice between client-side header bidding and server-side header bidding depends on its monetization strategy and the type of inventory it is prioritizing. The calculus typically involves weighing user experience (latency), control, revenue as well as internal resources in terms of implementation capabilities.

Compared to client-side header bidding, server-side bidding produces a better user experience with fewer latencies. The server-side wrapper calls the SSP’s server-side in a single call. The implementation also requires fewer internal technical resources thanks to an easier setup and management, which is even easier in in-app environments.

The type of inventory publishers monetize can also drive the decision. Take video as an example. Video ads are rich media files and, as a consequence, require more time than other formats to be loaded on a web page. Same thing goes for publishers with in-app inventory. Publishers don’t even need to install an SDK as everything is handled on the wrapper side.

On the downside, server-side bidding only allows for limited access to user cookies, which means limited user match rates with the demand and consequently lower bid density as compared to client-side header bidding. As all the auction management that determines the winner is done server-side, publishers also lack transparency and control over their inventory.

They also have less granularity in the set-up of their inventory with their SSP partners: websites, pages, formats, and creative types are only available in an aggregated form; thus, reporting and optimization strategies based on these criteria are less granular.

To achieve the two main goals of a publisher—maximizing revenue and fill rate—I would recommend starting by plugging into both solutions. Carefully evaluate performance per format and inventory type as well as which demand sources need to plug into which wrapper. On the one hand, client-side header bidding helps maximize cookie matching, thus increasing eCPM and on the other hand server-side bidding guarantees a high bid density and thus a good fill rate.

GD: Why is client-side STILL more transparent than server-side?

LL: Transparency is one of the key benefits of client-side header bidding, but still it depends on the type of header bidding you have implemented. With header bidding, you are more likely to understand the auction dynamics since you have a chance to reverse engineer the code of the wrapper.

"Publishers and big ad tech players need to collaborate to take back control of their data and their audiences. And why not build new standards to make sure everyone would benefit from this and maintain the value of client-side header bidding?"

When header bidding is implemented client-side using prebid.js, it relies on an open-source piece of code executed directly from the publisher’s site which then sends requests to several demand partners. This way publishers are able to check themselves directly in the code to confirm everything is fair.

Server-side bidding is more of a “black box,” with few triggers for optimization on the publisher’s side. It’s hard to understand how the prioritization logic works between the different demand sources or whether the wrapper applies hidden fees.

GD: Will the cookie’s dwindling relevance entice more publishers to embrace server-side header bidding options?

LL: If client-side and server-side header bidding become equal in terms of user identification, some publishers would probably go for server-side bidding. But transparency could still be the key asset of client-side header bidding that would appeal to publishers.

It’s important to remember however that client-side header bidding was a hack developed primarily to reduce dependency on Google. Many publishers with Google as an ad server won’t give up client-side header bidding for Google Open Bidding only.

Also, the client-side wrapper offers unique possibilities to implement innovative identification solutions and new alternatives to third-party cookies. Publishers and big ad tech players need to collaborate to take back control of their data and their audiences. And why not build new standards to make sure everyone would benefit from this and maintain the value of client-side header bidding?

GD: How important is it for partner code to be “on the page” now?

LL: Being on the page not only gives a likely advantage when implementing potential identity solutions, but also allows the publisher to implement much richer advertising experience strategies. In server side, header bidding setups are very standardized—it is the “one size fits all approach” where client side integration allows for much more personalization. This is a way for a publisher to leverage unique ad format capabilities.

GD: Do you think 2020 will find more DSPs popping up in publisher headers?

LL: One of the major 2020 market trends will certainly be the decrease in the number of players in the value chain. In this scenario, SSP value could be challenged.

But, while vertical integration may be the goal, SSPs can still offer great advantage as they have a unique understanding of the inventory and advertising integration in their pages. Most larger SSPs also integrate data science technologies to protect the queries per second of the demand platform.

SSPs also bring innovative solutions, such as dynamic revenue share, lazy loading, safe frame, high impact and custom formats, and personalized customer experience. DSPs won’t be able to access these features when integrating directly with the publisher.

The post The Persistence of Client-Side Header Bidding: A Conversation With Smart appeared first on AdMonsters.