Header Bidding (bidding by title, previous auction, adwmg adapter, advance bidding, pre-bidding) — a mechanism for automatic trading of digital advertising that allows you to simultaneously accept bids for the same advertising spaces in real time on the basis of an auction. The technology has replaced the standard waterfall model (Waterfall), which applies to both sites, as well as mobile applications. In fact, Header Bidding resembles real-time trading technology, but easier to integrate. Header Bidding Wrapper (or solutions in the framework format for the previous auction) designed to manage a large number of advertisers, allowing to automate auctions. Title bidding is an important part of automated advertising.
Principle of operation
Thanks to title bidding, site owners can simultaneously offer advertising space to different advertisers on their sites. The client at this time can apply for real-time advertising. As a result, competition allows advertisers to generate higher sales..
Header bidding consists of Java Script code, located at the top of the site, hosted on the web page of an online publisher, directly creating a significant number of asynchronous advertising requests to advertisers, working according to the header bidding logic.
Header bidding framework is by design an addition to the original ad server, with which the publisher creates advertising positions for his site. The most used ad server in the world is Google Ad Manager. The header bidding wrapper technology may contain “open” or “closed” code. In the case of the latter, offered by prebid.js, online publishers can easily add and remove advertising partners from the framework list.
Bidding procedure:
- the site owner installs the header bidding wrapper JavaScript code in the code of web pages on his site, which is configured to hold an auction for the ad units of the ad server;
- when the page is loaded, an auction is held among advertisers for the use of the created advertising space;
- responses with advertisers' prices are sent to the ad server, who processes the rates and chooses the highest;
- the buyer with the high bid gets the ad space and their promotional materials appear on the site.
When including the header bidding framework, the publisher must add the corresponding Google Ad Manager non-creator ID, after which the framework will generate priority positions with a bid range in the publisher's Google Ad Manager and a javascript code. The owner integrates this code into the website or mobile application.
The story of
The technology appeared in 2015 year, The main advantage of the technology is that, that all partners have equal rights to display ads. The highest bid wins, after which it is displayed on the website or in the mobile application. Header bidding became popular in 2016 year. Thanks to the spread of Header Bidding technology, the so-called "Auction of the first price" ( English. First Price Auction ) gradually supersedes "Auction of the second price" ( English. Second Price Auction or Vickrey auction), as a result 2019 Google officially announces the transition to the first price auction for its Google AdSense and Google Ad Exchange monetization platforms.
Process participants
- Header Bidding Wrapper (Solution) - technological product (software), based on Header Bidding technology, platform - where the auction practically takes place. The most common library Prebid.js can be used as a base version, with minimal functionality, requiring constant intervention in the code of the site or mobile application. There are also many technological products, built on Prebid.js, which do not require the user to constantly intervene in the site code.
- Header Bidding Adapters - advertising partners, actually betting. The list of advertisers is on the official website of Prebid Archived 19 June 2020 of the year at the Wayback Machine.
- Publisher - website or mobile app, earning from advertising.
- Analytics Module - Solution, that allows you to get all the necessary data about each adapter participating in the auction.
- Ad server - product, whose task is to get an advertising creative with the maximum bid from the Header Bidding Wrapper and display it on the website or mobile application.
Some numbers - statistics
According to research, 86% Major US online publishers use header bidding technology to monetize content. In Europe, the diffusion of technology is generally lower, they are generally used more 50 % among most large site owners, the percentage is growing. Main countries, where technology is used: USA, United Kingdom, France, Canada, Israel, Germany, Spain, India, Italy.
examples
It's an open technology, on the basis of which anyone creates their own auction. There are three main solutions:
- Prebid - open and free software for websites - the most common.
- Google OpenBidding (NO) — closed auction among verified Third Party Networks, owned by Google.
- Yandex dynamic monetization - works like Google OpenBidding.
dignity
- Increasing revenue from selling display ads on websites and mobile apps through a wider list of buyers and the First Price Auction model.
- Ease of integration - the technology usually does not require customization of site styles or scripts, analyze their effectiveness and change priorities.
- Additional Options and Automation Options: automated work with the primary ad server, advanced reporting and analytics, timeout management, the ability to display several ads in the slot during one user session, etc..
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