Header Bidding vs Open Bidding
What are the differences between Header Bidding and Open Bidding? Which one is better? Can I run them both on my site at the same time? These are some of the most common questions we get on this topic.
What is Header Bidding?
Header bidding, also known as advance bidding or pre-bidding, is a technique used in digital advertising to allow publishers to offer their inventory to multiple demand sources simultaneously, rather than sequentially.
Traditionally, publishers would offer their ad inventory to an ad exchange, which would then send the inventory to different demand-side platforms (DSPs) through a process called "waterfalling." The DSPs would then bid on the inventory, and the exchange would select the winning bid.
With header bidding, the publisher includes code on their website that allows multiple demand sources to bid on the inventory at the same time. This allows the publisher to potentially receive higher bids and revenue, as the demand sources are competing against each other in real-time.
What is Open Bidding?
Open Bidding is a real-time bidding (RTB) solution offered by Google that allows publishers to sell their ad inventory to the highest bidder in real-time, using a demand-side platform (DSP) to facilitate the process. Open Bidding is part of Google's Ad Manager platform, which is a suite of tools for publishers to manage their ad inventory and monetize their content.
Open Bidding allows multiple demand sources to bid on a publisher ad inventory simultaneously, rather than sequentially through a process called "waterfalling." This can help to increase competition among buyers and potentially lead to higher bids and revenue for the publisher.
Google Open Bidding is often used in conjunction with header bidding, which allows multiple demand sources to bid on ad inventory simultaneously. It is intended to be a more efficient way for publishers to monetize their ad inventory, as they can potentially receive higher bids from a wider pool of buyers.
Open bidding has become increasingly popular in recent years as a way for publishers to take more control over their ad revenue and to potentially increase their earnings. The ease of integration and lower latency is one of the winning factors.
What are the main differences between Header Bidding and Open Bidding?
- Competition: In header bidding, demand sources compete against each other in real-time to bid on the publisher's ad inventory. In open bidding, all interested buyers are able to participate in the auction and bid on the ad inventory, which can increase competition and potentially lead to higher bids.
- Revenue potential: Both header bidding and open bidding can potentially increase a publisher's ad revenue by allowing them to sell their inventory to the highest bidder. However, open bidding may offer more potential for increased revenue, as it allows any interested buyer to participate in the auction and potentially bid higher.
Which one is better, Header Bidding or Open Bidding?
It is difficult to determine which is "better" between header bidding and open bidding, as it ultimately depends on the needs and goals of the publisher and the specific circumstances of their ad inventory. Both techniques have their own advantages and disadvantages, and the best approach may vary depending on the publisher's specific needs and goals.
At Ad.Plus we always recommend Open Bidding because of easier setup/integration, easier reporting and revenue allocation. Everything can be conveniently setup right inside the publisher's Google Ad Manager account.
Need help to setup Header Bidding or Open Bidding?
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