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Discover why Header Bidding is going to transform your profitability

(09/27/16)

Like other top-tier publishers, you probably find the monetization phase to be annoying and inefficient. At best, it distracts you from doing what you love, which is producing more great content! Monetization drives success, but shortcomings in existing digital advertising processes has to be improved.

Arrival of Header Bidding Solutions

More than a few leading content providers have been watching the startling rise of header bidding and wondering if they should jump on the bandwagon. Companies with this advanced technology promise to extract better returns from your inventory with less work for you. Experts across the digital eco system have increasingly become excited about the potential for consistently boosted profits.

The mysteries Explained

Understanding what header bidding is, is easy enough if you know a little history. Once upon a time, most salespeople in the industry manually placed orders by facsimile for fixed placements on individual websites or small website groups that offered active and reasonably relevant visitor profiles. This method is slow, costly and hit-or-miss in effectiveness, so the digital marketing industry evolved quickly into using demand-side platforms (DSPs) that automatically matched advertiser needs with flexible placements on large scales traffic. These programmatic platforms could handle geo-targeting, frequency capping and other concerns surrounding the fine art of tracking and approaching the best prospects.

As demand from media placement buyers grew for deeply customized approaches, many publishers responded by shifting their focus to higher-end placements that brought more profits than generic advertising spots. Increasingly sophisticated supply-side platforms (SSP’s) have raced to equalize the battlefield between publishers and advertisers over the past few years, but publisher-oriented platforms have still lagged behind advertiser-centric platforms.

This advanced technology now seeks to intelligently measure potential demand for your inventory from multiple independent buyers across the Web before actually setting rates at your advertising server. As each page from a specific website begins to load, the technology asynchronously offers that page’s available impressions to advertising networks, advertising exchanges and supply-side platforms for the best possible price before acting within milliseconds to close the deal. This approach abandons the inefficiency of averaging rates across disparate offerings in favor of squeezing more profit from your inventory.

How Header Bidding Increases Profits

Header bidding implementation pushes the concept of real-time bidding (RTB) closer to ideal for publishers. Rather than treating your inventory as an indiscriminate stew simmering in a giant pot, you can auction off your impressions separately for their maximum possible profit before selling off any remnant inventory. In this way, you avoid giving buyers unintended bargains on premium placements while still realizing fair returns on your remaining unsold inventory.

Furthermore, exposing your entire inventory to the widest possible marketplace of header bidding partners substantially increases the chances of finding the most profitable bidder for any subsection of the inventory. CPM optimization almost becomes a breeze with this more open approach to managing a placement marketplace otherwise fragmented across desktop and mobile devices. Header bidding essentially represents the natural next step in the evolution of yield-optimization strategies for the majority of publishers.

Challenges

The header bidding definition given above does gloss over a few practical difficulties, notably complicated setup procedures and the risk of longer page-loading times for content presentations already laden with outside calls to third-party servers. Still, a header bidding expert can make short work of any technical challenges. Few publishers make full use of the remarkable range of server optimization tactics available for snappy performance, and any small additional burden on server resources almost certainly can be easily overcome with widely available caching, script optimization and other techniques.

Header Bidding as a Primary Monetization Strategy

Because your current waterfall need not be altered, adopting modern header bidding methods as your go-to monetization strategy likely means a quick improvement in profitability across all your inventory with significantly less overall effort after the initial setup. Your existing partners will join new header bidding partners in providing incremental revenue streams for your premium content.

The bottom line is- header bidding should boost a publisher’s revenue immediately. Now the next step is choosing your partners wisely.

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