Know the Pros & Cons of Header Bidding for Publishers

Header bidding has revolutionized the way online advertising is bought and sold. In the past, advertisers would buy ad space through an ad network or exchange, and the ad would be served to the user through that network. This system had a number of flaws, the most significant of which were the difficulties in tracking where the ad was being served and ensuring that it was reaching the right audience. Header bidding solved this issue and more.

In this article, we'll explain header bidding in detail, we'll take a closer look at the pros and cons and ultimately help you make an informed decision about whether or not it's right for your website.

header bidding

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What Are Header Bidding and Header Bidding Platforms?

Header bidding has tons of perks of its own, as explained in this article, but if you're new to advertising, you might be wondering what is header bidding and what is a header bidding platform.

Header bidding is a type of programmatic advertising technology used by publishers (e.g. online retailers, media, and content websites) to increase their ad revenue from potential buyers. It allows multiple demand sources to bid simultaneously for each impression in real time, with the highest bidder winning the display ad space on the publisher’s website.

A header bidding platform is essentially a monetization platform. It offers publishers fully managed monetization solutions and customer support. These platforms can also connect you with numerous supply-side platforms (SSPs), help you stay on top of the competition, and take care of the successful optimization and implementation of your ads.

Increased Revenue

Publishers that have fully embraced header bidding have seen their overall ad revenue increase significantly, typically with a greater emphasis on high-value programmatic opportunities. For those considering taking the plunge into header bidding, there are specialist platforms available to provide support, making it easier than ever to set up and start enjoying the benefits of increased income.

Multiple Ad Buyers Can Bid on Each Ad Impression in Real Time

By utilizing header bidding, publishers and ad buyers alike are able to dramatically increase the quality of each advertisement. This new system gives multiple ad buyers a chance to bid on a single ad impression in real time, meaning that ads can be more accurately served in accordance with particular targeting criteria. This allows for fairer pricing that is beneficial for both the buyer and publisher, as well as increased relevance of ads for those browsing the web.

Increase Competition and Lead To Higher CPMs

Header bidding is revolutionizing the way web publishers monetize their content. By using header bidding algorithms, web publishers are able to simultaneously invite multiple ad networks and demand-side platforms to bid for each ad impression in an auction process. This increases competition between the different bidders and leads to more revenue for the publisher through higher CPMs.

higher CPMs

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However, Header Bidding Has Drawbacks of Its Own

Among the many perks that prebid technology offers, there are some drawbacks. Setting up and managing a header bidding system can be difficult and time-consuming, requiring expertise that some publishers may lack when it comes to configuring different elements such as timeout settings, analytics tools, and more.

Admittedly, the nuts and bolts of managing header bidding require technical prowess, but those who have taken the time to learn the required skills have been rewarded.

Moreover, despite its widespread adoption, there is no guarantee that using header bidding will result in higher CPMs. While a well-managed auction can boost a publisher's revenue from an ad impression, this outcome is not always guaranteed.

Publishers Should Weigh the Pros and Cons of Header Bidding

Header bidding offers numerous advantages such as improved transparency, higher yield, and fewer discrepancies in impressions and bids. However, it does come with its own set of challenges:

  • Implementation can be complex for some publishers, bringing extra overhead costs that need to be taken into account.
  • If implemented incorrectly, header bidding can cause problems with the user experience such as slow page loads.

It is therefore essential that publishers carefully weigh the pros and cons of header bidding before making a decision on whether or not to implement it on their website. This way they can ensure they are making an informed decision that will be beneficial in the long run for their publishing business.

Bottom Line

To conclude, header bidding has the potential to significantly increase ad revenue for many publishers, but it is not a one-size-fits-all solution. Researching which technology options are available and what other publishers are doing can help ensure that you make an informed decision that's best suited to your website and goals.

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