What is header bidding plugins and its techniques?

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What is header bidding plugins and its importance?
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Introduction

• If you are in the advertising technology, you
  may encounter the term header bidding because
  header bidding is one of the most important
  advancement in ad tech since the introduction of
  Real Time Bidding (RTB).
• There are so many concepts in ad tech but to
  understand how this innovation work and how it
  can fit into the existing landscape may be
  difficult.

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What is header bidding?

• It is an advanced programmatic advertising
  technique which is also referred as pre bidding
  or advance bidding.
• It allows the publishers to offer the ad space
  simultaneously to numerous SSPs or Ad exchanges
  at a time.

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• If a publisher wants to sell the ad space on its
  site, the process will go like this
• First, your site will be to the ad server.
  Generally, the direct selling inventory takes the
  precedence over any programmatically sold
  options.
• Through the sites ad server, the available
  inventory will be served which means the unsold
  inventory will be served first to the top ranked
  ad exchanges and if it still unsold will be
  passed along to the second ad exchange and so on.
  
• The rankings are based upon the size, but it
  is not necessary that the biggest ones will pay
  the highest price.
• The main goal is to bring a greater level of
  transparency in the process in order to help the
  publishers to understand who is bidding what
  amount.

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 Water fall model

• Publishers followed the waterfall model
  traditionally which had so many drawbacks.
• It is a technique where publishers used to
  maximize both the pricing and the sell through
  rate of the inventory.
• It is also referred as daisy chaining.
• In early days, publishers were operated in a
  completely different environment where there was
  many questions unanswered.

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 Water fall model

• Some of the major concerns are
• Valuation of inventory was improper.
• They never knew who was buying the impression
  and there were some situation where some group of
  people committed the frauds to get millions of
  dollars.
• It became very crucial and important to
  alleviate the risks.
•  

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• In this waterfall approach, the publishers
  serves the impressions to buyers in a descending
  order that, if the ad matches with the required
  specifications, it will be served.
• This approach is inefficient and ultimately it
  hurts both the advertisers and publishers.
• The workflow is offering your inventory to
  four different buyers, one after another by
  lowering the price whenever someone rejects the
  inventory.
• Eventually some might say yes for the bargain
  but that would not be considered as the best
  price.
• And also it creates a impression that you are
  selling the low grade inventory which had been
  rejected by many people.
• It is like losing the inventory between each
  pitch when we use the cascading passback
  approach.

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Header bidding techniques
There are two main types of header bidding
techniques

• Client side
• Server side

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Client side

• In this technique, we inject a header tag in
  the heading element of the publishers website.
• The string of code present in the header
  element will be invisible to the end user
• The tag is provided by the header bidding
  vendor. This particular snippet is actually
  responsible for connecting various sources
  interested in participating the bidding and
  purchasing ad inventory.
• Once if the page loads on the demand sources
  (e.g. buyers and ad networks connected to supply
  side platforms and ad exchanges) bid on each
  impression on a page.
• This enables the impressions to be offered to
  multiple demand partners who can bid on it. If no
  one ready to bid, then it will create a second
  price auction. This process goes on until the
  impressions got sold.

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Benefits

• Higher fill rates If there are more buyers,
  then there will be higher chances of filling all
  types of available inventory which may includes
  both the premium and the unsold inventories.
• Higher CPM (Cost per Mile) Publishers can
  receive more bids from the buyers who are
  actually interested and are willing to buy more
  price.
• Insights Floor pricing allows the publishers
  to understand the real worth of the inventory.
• For example if a publisher sets a floor price
  which is the lowest price that they are willing
  to sell their inventory for a minimum CPM and
  after utilising header bidding finds that it call
  sell for a maximum CPM, then they can obviously
  understand where they lose out on earlier.

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Server side

• In the client side header bidding, it sends
  the requests from the browser whereas in server
  side header bidding it sends the requests to the
  different SSPs from the ad server.
• It means that the auction will takes place
  outside the server instead of the users browser.
  
• There is only less implementation work to do
  because with this script, it will be added to all
  the partners.

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• On the ad server side, there will be no
  change.
• Publishers can decide to set up one set of
  line items across all the partners or can set
  line items per partner.
• There are often hundreds to thousands of line
  items will be required per partner and as
  mentioned before, one of the key benefits of
  server side bidding is it can able to add more
  number of partners, it is more likely for the
  publishers to pick the former option and can
  consolidate the ad server setup into a single
  set.

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Why header bidding is so important?
Header bidding is an important one for both the
publishers and advertisers. Lets get started
with publishers.
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Maximum revenue for publishers

• In the traditional waterfall approach, each
  exchange partner would have a corresponding line
  item in the publisher ad server and each would
  sit at a different priority.
• In the priority, if the first exchange partner
  did not purchase the impression, it would cascade
  down to the next exchange and to the next until
  someone bought it.
• Each exchange partner would be configured at a
  different floor price so the cost at which the
  impression could be bought would keep drooping as
  it cascaded down.

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Premium inventory for the advertisers

• Advertisers have the access to premium
  inventory which was previously available via
  direct deals with the publishers.
• Ad buyers who use the programmatic channels
  are finally able to get a real look at all of a
  publishers impressions.
• Initially, RTB had a negative reputation that
  it mostly traded the unsold inventories.
• It had a negative connotations associated with
  low quality (e.g., unsold stuff or remnant where
  nobody else wanted).
• There were clear redefinitions of RTB. Most
  RTB inventory actually was available at the
  bottom of the waterfall so the session depths
  were lower (i.e. last look).
• It was a result that how the publishers chose
  to implement their SSP partners in their ad
  servers.

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• Instead of using their SSPs, the way SSPs
  wanted to be used as a primary ad server for the
  publisher, they relegated them to line the items
  at the bottom of the ad server.
• With the header bidding, RTB can now have a
  first look at inventory even above the direct
  orders which is considered as a giant leap in the
  evolution of ad serving.
• Header bidding can fuel the accelerated
  adoption of programmatic ad tech among
  publishers.
• Reviveadservermod specifically works on this
  plugin to attract more customers. For more
  information, you can visit this page -gt
  www.reviveadservermod.com. It surely gives you a
  clear idea about the usage of the plugins.
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