How did Header Bidding Change Programmatic Advertising?

How did Header Bidding Change Programmatic Advertising?

Programmatic advertising first appeared way back in 1994, essentially marking the start of what would eventually become the vast and lucrative world of digital marketing as it’s known today. 

Fast forward to 2022, where the programmatic advertising market is worth a few dollars (valued at $455 billion in 2021), and marketers everywhere are leveraging it to the best of their ability. 

Like almost everything tech-related, evolution is inevitable, and despite its relatively old age, programmatic advertising has undergone some serious upgrades in recent years. 

One of the bigger changes has been the concept of header bidding. Introduced in 2014, header bidding remains an extremely popular way of generating revenue for publishers. 

Google is still yet to phase out cookies, so it’s a little early to say what this move means for client-side header bidding, but in the meantime, it’s worth taking a look at the current state of programmatic advertising, especially if you’re thinking about the value it could bring to your own company or product. 

What is Programmatic Display Advertising Exactly? 

Programmatic advertising uses automated software to buy up digital advertising space in relevant locations online. It doesn’t just refer to the online realm either. It could encompass T.V. or mobile ad space too. 

This is usually made possible by a programmatic advertising platform, which changes based on who is purchasing the ad space. For example, a brand or a programmatic advertising agency will use a demand-side platform (DSP) to bid on ad space, whereas a publisher generally utilizes a supply-side platform (SSP) to put their ads up for grabs. 

You might want to look at this blog on the demand side platform vs. supply side platform for greater insight into the main differences. 

The bidding part comes into play when multiple parties vying for the same impressions, and this all happens extremely quickly behind the scenes, as the bidding process is taken care of by the automation software. The software will have pre-determined parameters that it sticks to when starting this process. 

Increased Ad Revenue 

Publishers can easily leverage header bidding in programmatic advertising platforms to boost their ad revenue, adding a wealth of extra value to each individual impression in the process. 

They can do this by selling multiple ad spaces at once and across different platforms, too, extending the range of their impressions. 

Plus, more reach means more buyers, and more buyers theoretically translate into higher bids since the market is busier and the competition is fiercer. 

In this regard, header bidding irrevocably changed the programmatic advertising landscape, making it a potentially more lucrative place for publishers and, in turn, providing them with the space, they need to make their impressions visible to the right buyers.

Increased Visibility 

Visibility works both ways, as the advertiser bidding on impressions also gets a chance to seek out more relevant and higher value publisher inventory should they wish. 

This makes opting for programmatic advertising solutions an enticing prospect for companies and marketing professionals everywhere – the speed and efficiency it promises can be a time saver on both ends. 

However, there are often complications, especially since programmatic advertising platforms can be so difficult to navigate for the uninitiated. Even for seasoned marketers, the software is sometimes unnecessarily complex. 

This is just one of the main reasons why many turn to an experienced programmatic advertising company to get the job done. 

Equal Access

In many ways, the introduction of header bidding leveled the programmatic advertising playing field, as technically speaking, everyone has access to the same impressions.

Moreover, the bidding-style setup eclipses the traditional waterfall system in terms of fairness, as it’s not a first-come-first-serve operation since everyone bids simultaneously. 

Therefore, those with more money to spend don’t necessarily come first in the pecking order. This, in turn, benefits both the publisher and the advertiser. 

Better Targeting

Ad targeting also gets a nice boost in efficiency through header bidding, which will probably be music to the ears of anyone trying to flourish in their specific niche. 

This is partly due to the bidding system, which allows advertisers to take note of a publisher’s complete inventory, granting them some exceptionally valuable insight into how far their prospective impressions can reach in the first place. 

Programmatic advertising solutions are adopted by countless marketing teams for this very reason. An impression that guarantees value is a powerful element in any well-structured marketing campaign.

Mobile Advertising

Mobile advertising is a hot topic in today’s digital climate, and many take full advantage of mobile programmatic advertising to boost their visibility and generate revenue alike. 

Through A.I. and machine learning, header bidding in mobile programmatic advertising seeks to bolster efficiency and improve targeting, often via data collected from an individual’s phone. 

How We Can Help

PadSquad is a specialist programmatic advertising company, and we pride ourselves on being able to navigate the world of header bidding with diligence and efficiency. 

If you want to fully embrace the amazing opportunities offered by this popular and effective form of digital marketing, don’t hesitate to reach out to our friendly team today, we’d love to help you take your brand to the next level. 

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