Everything you Should Know – Header Bidding Vs Exchange Bidding.
The gist of programmatic advertising can be brought down to two phrases: Obtaining the ideal value for opinions and appearing in front of the right audience. Header Bidding and Exchange Bidding are here to provide both. Then, who is the winner — Header Bidding Vs Exchange Bidding?
We have come a long way in the days where the advertisers and publishers relied entirely on Google to market their inventories.
In actuality, Header Bidding has its own unbeatable location in the modern programmatic advertising not only because it assists publishers and advertisers to exchange optimally, but also it gives them the flexibilitythey had to realize.
Needless to say, Google and Facebook duopoly can not be chipped away by simply Header Bidding. But, it’s an integral hack which will have its place in the adtech. Maintaining the future of Header Bidding aside, we will attempt to concentrate on Header Bidding Vs Exchange Bidding in this piece.
We are going to examine what they are, how they operate, and what are the differences between the two bid technologies.
Header Bidding Vs Exchange Bidding
Header Bidding or Pre-bidding is an advanced programmatic technique where you could open your inventories to several demand spouses, prior to sending the call to the advertisement server. So, bidding parameters (in the need partners) and advertisement request will be sent to the ad server.
Why should you do this?
- To avoid:
- Waterfall Setup of Ad server and
- Google AdX Privilege.
Avoiding them yield better earnings and put everyone on the same foot. Want to know more about the’Waterfall’ and’Google AdX Privilege’ and why you need to avoid them? Have a look at this definitive guide.
As a consequence of header bidding, publishers have observed improved ad revenue without increasing the amount of ad units.
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Exchange Bidding, also referred to as Google’s Header Bidding is developed by Google to take back its so-called monopoly status. As header bidding was shown to be effective for both advertisers and publishers, Google published’Exchange Bidding’.
To be frank Exchange Bidding was a counter punch by Google to Header Bidding Vendors.
Exchange Bidding is a server-side unified auction where many Ad Exchanges and SSPscan compete together with Google’s Ad Exchange (AdX) to acquire the impressions, exactly like header bidding. Google reportedly dropped its final look advantage in EBDA to make itself more favorable.
The main distinction is, the voucher will be occurring inside DFP (ad server), not on the users’ browser. Here is how the process looks like:
1. An ad request is triggered and the data is passed to the DFP advertisement server
2. DFP runs a unified auction to determine the best return
2a. DFP chooses the best-trafficked line item to compete at the unified auction
2b. DFP sends a bid ask to targeted return partners
2c. Targeted yield partners run their own auction and reunite their competitive bid to DFP
2d. DFP hosts a unified auction and selects a winner
3. A creative or Mediation record is returned to the publisher
Header Bidding Vs Exchange Bidding — Which One is Best for You?
Both have their own pros and cons. As an example, Header Bidding will be totally transparent and can be handled or customized by publishers. And, with the availability of Open source header bidding technology such as Prebid, it’s become a lot simpler to implement and implement header bidding.
On the other hand, Exchange Bidding helps you to cope with Page latency. As we have altered the auction to server-side, the amount of ad requests and wait time can be reduced. But, Server deals with the auction and publishers don’t have any control here. Google does not allow PMPs and determines the buyers that can compete with AdX. Adding to this, adtech sellers are expected to pay a fee or tax to Google for engaging. So, its still under question if publishers and buy-side platforms or Ad Exchanges will use Exchange Bidding.
What is Server-Side Header Bidding?
Server-Side Header Bidding was designed to perform header bidding on the server as opposed to using browsers. This, in turn, reduces webpage latency and frees up the limitation implied on publishers (In Client-Side Header Bidding, Publisher can add up to 7 or 8 need spouses. If the count surpasses, page latency will be high). However, advertisers and publishers confront a problem with the game rates in this technique.
There is no single method with no downsides. It’s your responsibility to decide and implement the ideal solution. Up to now, OpenX is the noticeable one to openly state that the revenue was increased while using Exchange Bidding (in Beta). If you are a midsize publisher, you will need a transparent solution where Exchanges and SSPs can incorporate with you at no cost. After all, we are talking about a few additional milliseconds load time in header bidding. If you are a premium publisher, then it is possible to think about implementing it on the Server-Side.