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Header Bidding Vs Open Bidding
In the header bidding vs. open bidding debate, publishers need to understand the differences between the two ad types. This article outlines the benefits of header bidding and open bidding and their respective impacts on ad value. Both of these advertising types have their advantages and disadvantages, so a proper comparison of the two is imperative. Also, keep in mind that header bidding has several distinct advantages over open bidding, which can help you decide which method is best for your specific situation.
Benefits of header bidding vs open bidding
There are advantages and disadvantages to both types of header bidding. In general, header bidding is a faster way to monetize your site than open bidding. However, it isn’t a good idea to use header bidding on your own unless you are confident about your technical skills. The advantages of header bidding outweigh the disadvantages of open bidding. The main benefit of header bidding is that it is self-hosted and managed. It has a large demand partner network which boosts your revenue instantly. Open bidding, on the other hand, is reserved for the largest publishers and is known to produce high commissions. However, client-side header bidding is catching up to server-side header bidding and is almost equal in speed and latency.
Publishers can benefit from header bidding if they use it correctly. The old method of pre-header bidding sent out bid requests one by one, ignoring those of bidders further down the chain. In addition, bidders were not allowed to bid higher than the first one. Header bidding allows publishers to increase their revenue by 70%! It is also simpler to implement, requiring less work in DFP.
Header bidding solves these problems. Since it allows a large number of advertisers to place bids at once, it’s much easier for publishers to determine the best bidder. The waterfall setup, on the other hand, is complicated and requires a large amount of time. The waterfall approach causes increased latency. It also forces publishers to order their demand partners by highest waterfall bids. Header bidding solves these challenges and increases fill rate.
In comparison to open bidding, header bids are usually higher. The difference is that header bidding allows advertisers to access publisher’s inventory without having to use a separate program. Both options can help you increase floor price. Despite the differences, both methods are highly effective. Ultimately, it’s up to you which method you choose. While header bidding has many advantages, open bidding has many disadvantages and benefits.
As a publisher, header bidding increases your yield. Because header bidding allows multiple ad networks to compete with each other for the same ad space, header bidding allows you to offer more ad space to multiple SSPs. Consequently, you get a higher fill rate. You don’t have to rely on a single SSP, which can make the whole process faster.
Differences between header bidding and exchange bidding
If you’re wondering what the differences between header bidding and exchange biding are, then read on. Both methods are used for online advertising. In the past, only the largest publishers used header bidding, but now you can manage and self-host your headers. These methods also have a network of demand partners and increase your revenue immediately. However, open bidding is a highly competitive process that only benefits the largest publishers. Moreover, it can be highly profitable for publishers, as its commissions are very high. However, with recent developments, server-side header bidding has finally caught up to server-side counterparts, which makes both processes equally fast.
As the popularity of header bidding grows, many demand sources have adopted this technique. Exchange bidding, on the other hand, involves demand from Google’s Exchange Bidding partners. The number of such demand partners is growing, but it’s unlikely to rival the number of Open Source Header Bidding programs. In addition, demand sources that integrate with header bidding platforms have access to all demand. However, some exchanges place geographic restrictions on Exchange Bidding integrations.
While both header bidding and exchange bids are effective in maximizing revenue, header bidding has several advantages. Its transparency, cookie matching, and potential for demand are its main strengths. Exchange bidding, on the other hand, is easy to implement and maintain. You’ll need just a few lines of code to implement header bidding. With exchange bids, Google takes care of payment, servers, and demand partners. Header bidding, however, requires more active participation from publishers.
As previously mentioned, header bidding enables multiple demand sources to compete for the same inventory. This method is implemented on both client-side and server-side and allows multiple demand partners to bid on the same inventory. This method is beneficial for publishers as it eliminates the mystery around where they stand in the waterfall. This process also helps demand partners to see the full potential of their publisher. In the future, header bidding will become more widespread and the programmatic ecosystem will be more efficient and standardized.
While header bidding increases transparency, Open Bidding results in lower CPMs. While header bidding increases transparency, Open Bidding provides more control over the auction process. With header bidding, the publisher can make data-driven decisions on timeouts and geo-based bidder optimization. Unlike Open Bidding, header bidding offers publishers full access to data from all demand partners. It also allows publishers to access all the relevant bidding data.
Impact on ad impression value
While open bidding allows advertisers to bid higher for ad impressions, header-based auctions give publishers leverage to sell more ad space. By making their impression data available to advertisers before they see it, header-based auctions give publishers more control over the amount they charge for ad space. Furthermore, header-based auctions give more advertisers access to premium inventory. The waterfall model, also called daisy chaining, was the main method of selling ad space before header bidding became popular.
The advantages of header-based auctions over open-bidding include a higher yield and greater transparency of ad impression value. Header-based auctions allow more advertisers to compete for ad impressions on the same page, which helps publishers increase their revenues. Header-based auctions also improve page loading times, meaning publishers get more revenue for their inventory.
Header-based auctions can dramatically increase publisher revenue, as all demand sources participate in a single auction. Unlike open bidding, publishers can choose the publisher they want to work with to increase the value of their premium inventory. Publift has experienced 70% higher revenue using header-based auctions. The change has also led to lower reliance on a single supply-side platform. This has increased their ad fill rates and allowed for smarter allocation of impressions. Header bidding also minimizes sequential chaining and reporting discretions.
While the new technology is gaining ground, it is still relatively new and not widely accepted. Some sources have called header bidding a hack. However, Google has responded with First Look, a technology that gives DFP publishers the option to monetise similarly. This solution is closely tied with AdX. However, Google has not yet released full details of their algorithm and has yet to announce how it will treat non-Google bids.
Open bidding uses server-to-server auctions, whereas header bidding relies on server-side connections. Open bidding offers greater control over the auction process, but requires publishers to use multiple ad servers. The latter is also faster, which can reduce page-latent. The result is a greater overall value for the publisher. Therefore, it is imperative to select an ad server that uses header bidding, or else you risk losing out on valuable ad inventory.
While header bidding may have fewer potential for higher ad impression values, it’s still important to consider the advantages and disadvantages of both methods. Open bidding is less transparent than header bidding, and the dynamic allocation process can be a black box. In contrast, header bidding is more transparent than open bidding, because it enables the exchange of data and matching a user with a buyer’s database.