What is header bidding and how it works in programmatic?

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 What is header bidding?

Header bidding is an advanced programmatic technique that sends multiple bid requests to various exchanges simultaneously before the bid request passes into waterfall bidding. Header bidding eliminates the waterfall method where the inventories are filled based on the priorities. Header bidding is also known as pre-bidding, advanced bidding.

What is Header Bidding?
Header bidding
Header bidding allows publishers to sell their inventory at a maximum price by sending bid requests to various partners before the inventory falls in waterfall bidding. In header bidding, A piece of JavaScript code will be added to the header section<head> of the website. When a page on the site is loaded, The header code sends bid requests to the associated partners/exchanges simultaneously and collects the bid to compete them with the direct sold ads (Waterfall Bidding).Finally, The highest bidder will be allowed to place their ad in the website. This process takes place each time for every available impression opportunity.

Client side header bidding(CSHB)

In client side header bidding, the auction takes place in the browser. Here is how the browser side header bidding process works:

Client side header bidding
Client side header bidding

  • A user opens the browser and enters the website.
  • The browser starts loading the page.
  • The header bidding code(JavaScript) placed on the website starts sending the bid requests to various demand partners/exchanges from browser.
  • These partners respond back with their bid and the highest bidder wins in header auction.
  • The publisher then compares this bid with the bid of direct sold ads(guaranteed).
  • Among these bids the highest will be served with ad. 
  • The entire auction takes place in the browser.

Server side header bidding(SSHB)

In server side header bidding, the auction takes place on the server. Here is how the browser side header bidding process works:

Server side header bidding
Server side header bidding
  • A user opens the browser and enters the website.
  • The browser starts loading the page.
  • Instead of sending bid requests from the browser directly to various demand partners, The header bidding code sends the bid requests to the header bidding server.
  • Then, the server sends the bid requests to various various demand partners and exchanges.
  • These partners respond back with their bid and the highest bidder wins in header auction.
  • The publisher then compares this bid with the bid of direct sold ads (guaranteed).
  • Among these bids the highest will be served with ad.  
  • The entire auction then takes place on the SSHB server.
For more information on waterfall auction : Click here




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