If you’re familiar with the term “Header Bidding”, it’s because we use it at The Moneytizer. This technology has progressed incredibly in the programmatic world. Let’s try to understand what is Header Bidding and why it has grown so much over the past few years.
What is Header Bidding?
This technology is a way to sell ad spaces which offers publishers a maximum optimization of their ad revenues. The publishers can propose their ad spaces to different advertisers all at once. That way, advertisers bid to gain this ad space. When many advertisers bid simultaneously, the price of the ad space increases.
This method is very different from how it used to be done. Before, publishers offered ad spaces on networks that would trade them at variable prices. If a network didn’t want the ad space, it would pass it on to a second network. It was called a cascade system. As the cascade went down, the CPM price would decrease which meant less revenue for the publisher.
Header Bidding offers a better chance to publishers to increase their CPM, and therefore their revenues, while the advertisers gain access to a better quality of impressions and data.
What effect on advertising?
While more and more websites use this system to fill up their ad spaces, the optimization of the supply path has increased as well. In this optimization, intermediary steps are erased which simplifies the supply path. Since 2018, the standard ad units represent 90% of Header Bidding. Recently, this category has been broadened to include video and high impact ad units.
What is the future of Header Bidding?
Header Bidding for videos and apps has the largest margin of progression in programmatic. Standard graphic ads are still widespread with Header Bidding, whereas ads integrated to apps and videos are pretty rare. It is important to be reminded that Header Bidding is evolving fast, like most technologies and trends in advertising.
At The Moneytizer, we use this technology to guarantee to publishers of all sizes a simple and quick access to this complex system. We work diligently to ensure it is up-to-date to offer our clients the best experience possible. Let us help you increase your revenues!