Understanding Header Bidding
What is Header Bidding?
Header bidding is a technique that allows publishers to offer their ad inventory to multiple ad exchanges and demand partners simultaneously. This process helps create an open auction environment, inviting numerous partners to bid on ad space. By implementing header bidding, publishers can potentially increase their revenue by ensuring that they receive the highest possible bids for their ad inventory.
Implementing Header Bidding
Setting Up a Header Bidding Wrapper
To begin, a publisher must place a JavaScript tag, known as a header bidding wrapper, into the header of their website. This wrapper acts as a central hub, creating an open auction and inviting multiple demand partners to bid. The header bidding wrapper manages the process of sending bid requests to various ad exchanges, SSPs, and other demand sources.
Managing Demand Sources
Setting up the header bidding wrapper and connecting to demand sources is only the initial step. Most demand sources have complex requirements for joining their network, and many only allow you to join if they invite you. You can manage the wrapper and demand sources yourself using an open-source platform or work with a header bidding partner.
The Header Bidding Process
How Header Bidding Works
When a user visits the website, the header bidding wrapper script loads and sends ad requests to demand partners. These partners then bid on the ad inventory in real-time5. The wrapper selects the highest bid and sends it to the ad server. The ad server then conducts an auction between the bids from header bidding partners and other deals to determine the highest bidder.
Step-by-Step Guide
- Place a JavaScript, header bidding wrapper, in the website’s header.
- When a user hits the URL address, the website loads the wrapper script.
- The wrapper script sends ad requests to multiple ad exchanges, SSPs, and other demand sources.
- Each demand source responds with a bid.
- The wrapper script selects the highest bid and sends it to the ad server.
- The ad server conducts an auction, and the highest bidder gets the impression.
Optimizing Header Bidding
Testing and Monitoring
Testing the header bidding setup is an ongoing process to ensure every partner performs well. Weak partners should be removed, and strong partners should be added and observed9. Regular testing ensures the setup operates at its optimal capacity.
Best Practices
Identify the most valuable demand partners by evaluating the CPM they provide and the latency they cause. Define time-outs for bidders to prevent slow responses from slowing down the entire process. Specific wrappers enable the development of these timeouts during setup.