What is Header Bidding and How it is different from AdSense

Digital publishers desire an effective advertising environment that maximizes ad income from the advertising space on their websites. But header bidding is needed in order to make that fantasy a reality. The ability to present ad inventory to numerous demand partners thanks to header bidding increases publishers' ad income. By doing away with inefficiencies like Google AdX's (Google Ad Exchange) preferred bid position when a publisher utilizes Google's ad server, the procedure—which entails utilizing JavaScript to build a header bidding wrapper—allows advertisers to engage in improved ad targeting. Prepare for a thorough examination of header bidding. For good reason, it has become the ad tech industry's buzzword. So continue reading to master header bidding and increase your ad earnings

Water Fall Model vs Header Bidding:

Header bidding, a sophisticated programmatic advertising approach, substitutes for the waterfall method by enabling publishers to simultaneously offer their ad inventory to a number of ad networks and exchanges. In essence, header bidding is a programmatic auction in which bid requests are delivered in real time to a number of demand partners to increase the value of ad inventory. Header bidding, also known as advance bidding or pre-bidding, was used by 84% of the top 10,000 US websites, and more than half of US publishers agree that it led to higher CPMs.

Implementation of Header Bidding:

Publishers can create bid requests using browser resources by adding a JavaScript (JS) code snippet to the section of their website. The publisher's ad server filters these bids according to a set of criteria, and the highest-advertisement bidder's is subsequently displayed on the user's screen. In order to increase the ad revenue for their web pages, publishers should utilise header bidding because the entire procedure just takes a few milliseconds.

Working Methodology & Background Actions:

Header bidding begins as soon as the page loads within the user's browser. The header bidding code in the page header executes and calls all demand partners simultaneously to bid on this impression before calling the ad servers. All this takes place within a specific time frame picked by the publisher, often within a second. Many of these demand partners hold their auctions during this split-second window to determine the top bid they send. The highest bid values from each partner are then passed from the visitor's browser to the publisher's ad server before its direct inventory is called. Header bidding means that all the demand sources simultaneously participate in the auction, and publishers can control which sources participate in the process. Most importantly, publishers can increase the prices they are charging for their premium inventory.

Advantages of Header Bidding:

1. Increased control

• Publishers can control which sources can participate in the bidding process.

• In addition to retaining control over their sites, publishers can prioritize certain advertisers, encouraging marketers to continue working with their favorite publishers.

2. More Can Bid

• Publishers can expand and diversify the advertisers interested in buying impressions on their sites.

• Not relying on a small set of advertisers increases business resilience and adaptability.

3. Increased Revenue

• Publishers can make their inventory available to more advertisers, driving higher CPMs and revenue growth.

4. Increased Ad Quality

• Advertisers with an affinity for a certain publisher's audience will bid higher to get their ads before those users. The increased competition results in higher quality and more relevant ads.

5. Faster Loading Times

• Faster loading times. Header bidding decreases the time needed to sell an impression and render an ad on the page, which improves user experience and SEO results.

Header Bidding vs AdSense:

Comparing it to swimming in the ocean as opposed to a small pool is like comparing AdSense header bidding to that. Even if you can use header bidding tools like AdSense, using this method will allow you to attract a lot more publishers and ad exchanges to compete for your inventory. Google's overall market share is declining, down 10% YoY, as other advertising partners grow more competitive. Since header bidding is more obvious, publisher websites are using it more frequently, which is what is causing this development. The fact that more marketers spend money on private markets is another factor (PMPs).

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