What is header bidding, header bidder, & header bidding wrapper?
Header bidding is a method of integrating multiple demand sources into the ad serving process of a website. It allows ad exchanges, supply-side platforms (SSPs), and demand-side platforms (DSPs) to bid on inventory (i.e., ad impressions).
Header bidder typically refers to the technology or tool used in the header bidding process. It’s a piece of code or script that publishers place in the header of their website. When a page loads, this code triggers an auction process among multiple ad exchanges simultaneously, before making calls to the ad server.
Header bidding wrapper, also known as a container or pre-bid wrapper, is a piece of technology that helps manage multiple header bidding partners. It organizes and streamlines the process of simultaneous bids from various demand sources, ensuring that all bids are made within a certain timeframe. The goal of a header bidder/header bidding is to allow publishers to maximize their ad revenue by giving more demand sources the opportunity to bid on their inventory, and to allow advertisers to bid on a larger number of impressions. It is one of the most effective methods used to maximize website monetization, but can also improve the user experience by reducing the number of ad calls and latency on the page.
How does header bidding work?
Traditionally, when a user visits a website, the ad server sends a request to the ad exchange to fill an ad slot on the page. The ad exchange then selects an ad from its inventory and sends it back to the ad server to be displayed on the page. If the ad exchange doesn’t reply with an ad, the exchange sends the request to another ad exchange until an ad is delivered. This is known as the “waterfall” approach, because it involves a sequential process of filling ad slots. The waterfall setup works in the following way:
- A web page is loaded and the ad slots on the page are identified.
- The highest priority ad network, SSP, or DSP is given the opportunity to fill the inventory. If one of them is able to fill the inventory, the process stops and the ad is displayed.
- If the highest priority ad network, SSP, or DSP is unable to fill the inventory, the next one in line in the waterfall is given a chance to fill the inventory.
- This process continues until the inventory is filled or until there are no more ad networks, SSPs, or DSPs in the waterfall With header bidding solutions, the process is slightly different.
- When a user visits a website, the ad server sends a request to the JavaScript code in the header of the webpage (the “header bidder“) to fill an ad slot on the page.
- A request is sent to multiple ad exchanges, SSPs, and DSPs simultaneously.
- Each of these platforms then has the opportunity to bid on the ad impression in real-time.
- The header bidder selects the highest bidder and sends the ad back to the ad server to be displayed on the page.
- The ad server serves the ad to the user’s browser, and the ad is displayed on the webpage.
What Defines an Ad Tech Company?
An ad tech company is not just a service provider; it’s a problem solver in the complex world of digital advertising. These companies offer a plethora of services and ad technologies that facilitate the buying and selling of digital advertising. They have evolved to provide sophisticated solutions that include Demand-Side Platforms (DSPs), Supply-Side Platforms (SSPs), ad servers, and more. These platforms and technologies are designed to make digital advertising more efficient, targeted, and profitable for all parties involved, from advertisers and agencies to publishers and tech providers.
Get startedThe Evolution of Ad Technologies
The term “ad technologies” encompasses a wide range of tools and platforms that have been developed to serve the digital advertising industry. These technologies have undergone significant transformations since the early days of simple banner ads and pop-ups. Demand-Side Platforms (DSPs) A DSP is a critical ad technology that serves as a hub for advertisers. It allows them to buy digital ad inventory across a multitude of publisher sites through a single interface. DSPs have evolved to offer features like real-time bidding, audience targeting, and data analytics, making them indispensable tools for modern advertisers. Supply-Side Platforms (SSPs) SSPs serve the other side of the equation, focusing on the needs of publishers. These ad technologies enable publishers to manage and sell their ad inventory more efficiently. They connect publishers to a wide range of advertisers, ensuring that each piece of ad space is sold to the highest bidder, thereby maximizing revenue. Ad Exchanges Ad exchanges are the marketplaces where the buying and selling of digital advertising inventory take place. They are central to the programmatic advertising ecosystem, facilitating real-time auctions where multiple advertisers can bid on a single piece of inventory. Data Management Platforms (DMPs) Data is the lifeblood of digital advertising, and DMPs serve as the circulatory system. These platforms collect, analyze, and categorize data from various sources, providing invaluable insights that help advertisers target their campaigns more effectively.
Get startedBenefits of working with ad tech companies
One of the key benefits of working with ad tech companies is their ability to provide advertisers with access to large pools of data. This data, which can come from various sources, including social media platforms, search engines, and online retailers, allows advertisers to gain a deeper understanding of their target audiences and the advertising landscape. By analyzing this data, ad tech companies can help advertisers develop and implement more effective and efficient advertising strategies that align with their goals and reach their target audiences in meaningful ways. Another advantage of ad tech companies is their ability to automate many of the manual and time-consuming tasks associated with advertising. For example, programmatic advertising enables advertisers to automate the buying and placement of their ads, freeing up time and resources to focus on other important areas of their business. Additionally, ad tech companies can automate ad tracking, analysis, and optimization processes, providing advertisers with real-time insights and data-driven recommendations that help them make better advertising decisions and achieve their goals.
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