How Header Bidding Increases Ad Revenue

Let’s say you have a website, advertising platforms that you want to monetize. But you don’t want to overpay commissions to ad networks.

And therefore, look for opportunities to auction directly between advertising partners on a competitive basis to choose the best bid and maximize ad revenue. Yes, your challenge has the perfect solution – Header Bidding with supply-side platform (SSP) integration – a programmatic advertising technology that optimizes the monetization of ad space by directly transacting with the best bidder advertisers. 

To be sure: In 2023, ad revenue for publishers using Header Bidding grew by 20 per cent, AdOpsOne. But Header Bidding code integration, competitive bidding and increased ad revenue – no, it doesn’t work that straightforwardly. The complexity of Server-Side Header Bidding integration and technical issues can cause insurmountable difficulties that can only be overcome with the help of experts, such as from SmartyAds. So that after gaining experience, you can move forward on your own through the labyrinth of ad optimisation. What Header Bidding is and how it works, we’ll look into it below.

What is Header Bidding?

So, Header Bidding is a programmatic advertising technology that introduces an element of competition between advertisers on the publisher side. The goal of this tool is to force advertisers to offer publishers the best price per ad impression. In your webmaster’s language, Header Bidding looks like the following:

1. Code Integration: From an SSP (Supply-Side Platform) like SmartyAds, your webmaster receives a special code and installs it on your web page.
2. Auction: When a visitor visits the page, this code sends data about him to all connected partners. Before the page fully loads, Header Bidding initiates an auction among advertisers (who are SSP platform partners).
3. Display: Advertisers compete in an auction format – who’s bigger! – to win the bid. The winner get all displaying their ad to a targeted audience on your site.

The advantage of this approach is that you, as the webmaster or owner of the advertising space, you establish a direct link to each advertiser. Header Bidding eliminates double commissions, making it appealing for publishers. Unlike classic ad networks, you engage in separate contracts and receive payment without dual commissions.

The Benefits of Integrating Header Bidding with an SSP

Imagine having first-hand access to advertisers – that’s what Header Bidding integration with a robust SSP offers. Let’s look at the benefits in detail. 

• Access to a wider range of advertising partners – advertisers:
  • SSPs connect publishers (that’s you!) with a wide variety of advertisers, from large brands and ad agencies representing a variety of clients to SMBs operating in localized markets.
  • More advertisers means more competition, and competition means higher prices. It’s like having survival games for the ad inventory on your site, with each participant trying to outbid the others. The key to efficiency is to automate a process that takes fractions of a second. 

• The power of competition:
  • While the traditional model is a succession of ads, Header Bidding turns this concept on its head, turning a waterfall of ads into an all-out race for survival, with only the most creditworthy making it to the finish line.
  • The key to Header Bidding’s effectiveness is that advertisers bid simultaneously, creating healthy competition. The result? Higher CPMs and increased revenue for publishers.

Common sense dictates that it’s not just about getting all the ads you want, but getting the best ads at the best price. In the context of eMarketing, Header Bidding levels the playing field for all advertisers.

What does that mean for publishers?

Your goal as a publisher is simple: maximize revenue while maintaining the user experience. Header bidding helps you achieve both. By integrating with SSPs, you simplify the process. No more juggling multiple ad networks or dealing with complicated settings. Plus, the increase in revenue is real. Studies show that combining header bidding with a robust SSP can dramatically increase your revenue. 

Consider an EdTech platform that offers online courses. Initially, their revenue growth was limited by traditional ad-selling methods. Seeking effective solutions, the platform transitioned to header bidding. As a result, it attracted more advertisers, including major brands and agencies interested in educational projects. The competition spurred a remarkable 30% increase in revenue. Additionally, EdTech gained better inventory management capabilities and accurate analytics data, empowering its marketers to optimize campaigns and enhance the user experience. Overall, integrating Header Bidding with SSPs isn’t merely a technically sound move; it’s a strategic approach to driving revenue. Pretty impressive, right? For more success stories, check out Digiday.

Conclusion: How to Get Started and What to Expect

Suppose you are the commander-in-chief on the battlefield. Imagine that your urgent orders are delayed for minutes, hours, or even days. Consider how quickly you will lose the war and be banished in disgrace to deserted islands – but all this exoticism is in the past. There’s a new player on the battlefield of modern advertising – Header Bidding. It offers a powerful set of tools for publishers.

1. First steps:

• Start by understanding your goals. Do you want to increase revenue? Improve fill rates? Do both?
• Next, choose your partners wisely. Look for trusted SSP platforms, such as SmartyAds, that meet your needs. These partners will be your behind-the-scenes team during the ad auction.

2. Setting the stage – integration and customization:

• Integrate Header Bidding into your ad stack by having the webmaster add a code snippet to your site. The initial setup may seem like lining up troops on a battlefield, but the rewards are worth it.
• Customize your ad waterfall. Unlike traditional ad networks, which are characterized by sequential shifts, header bidding allows all advertisers to compete at the same time. It’s like a speed date for advertisers. Only the best really wins. 

3. Monitor and optimize:

• Monitor performance. Metrics such as CPM, load and latency will show you an optimization strategy. Adjust settings as needed.
• Optimize timeouts. Header bidding auctions are lightning fast. Set the right timeout to balance revenue and user experience while delaying code loading.

4. Troubleshooting.

• Yes, you’ll need to learn. But think of it as raising your advertising game. Invest time in understanding the process – it will pay off.

In closing, it’s worth noting that while Header Bidding isn’t a panacea, it certainly offers a way to boost revenue. Therefore, roll up your sleeves, embrace the challenges of customization, and watch your ad revenues soar!