What is Video Header Bidding?
Video header bidding is an advanced programmatic advertising technique that allows publishers to offer their video ad inventory to multiple advertisers simultaneously. This approach contrasts with the traditional waterfall method, where ad inventory is offered sequentially to buyers3. By creating a unified auction in real-time, video header bidding increases bid opportunities and revenue for publishers.
Adoption and Growth of Video Header Bidding
Almost 67% of publishers are currently using header bidding, with many planning to increase their usage. While a portion of publishers have not yet implemented video header bidding, they intend to start using this strategy for their video ad inventories. For desktop video inventories, 59% of publishers have been using video header bidding for about a year and plan to expand its use.
Benefits of Video Header Bidding for Publishers
Video header bidding offers several advantages, including maximized revenue, increased ad fill rate, and greater transparency.
- Maximized Revenue: Video ads typically have a higher effective cost per mille (eCPM) and click-through rate (CTR) than static ads, boosting ad revenue for publishers. 61.3% of publishers reported that header bidding increases ad revenue across all channels, including video inventories.
- Increased Ad Fill Rate: Video header bidding increases the ad fill rate by 57.7% and the bid rate by 51.6%. More demand partners increase the likelihood of filling video inventory, improving fill rates.
- Transparency: Header bidding analytics tools enable publishers to monitor the performance of their advertisers. The technology flattens the daisy-chaining process and creates a unified auction in real-time which further increases the bid opportunities and revenue.
- Improved User Experience: Header bidding can result in faster load times, providing a better experience for users.
Impact on Programmatic Advertising
Video header bidding is changing programmatic advertising by enabling publishers and advertisers to avoid selling and buying ad impressions in bundles through sequential auctions. By getting bids from all bidders simultaneously, the yield increases because the party willing to pay the most for the impression wins. This transparency and revenue growth are crucial benefits for publishers.
Potential Disadvantages
Despite its advantages, video header bidding also presents potential disadvantages. Data security can be a concern, as some advertisers might receive bid requests but not place bids.