pre-bid

Header Bidding Explained Step-by-Step

I’ve gone over what header bidding is in an earlier post and some of the key differences versus traditional tag based setups, but I’ve always strived to technical bluntness on this site as well, hence the diagram and step-by-step path below.  As a point of comparison, it could be a good idea to re-familiarize yourself with how ad serving works and the standard exchange redirect path at this time as well.  Note that header bidding is also sometimes referred to as ‘advance bidding’, ‘tagless’, or ‘pre-bid’ integrations.

 

How Header Bidding Works

How Header Bidding Works:

  1. User requests a website
  2. Header tag script redirects user to one or many SSPs (or DSPs, or Exchanges)
  3. User calls one or many SSPs in parallel
  4. SSPs conduct auction with DSPs and internal network demand*
  5. DSPs respond with bids*
  6. SSP determines winning bid value and returns to User
  7. User passes bid value into ad request and calls Publisher Ad Server
  8. Ad server determines final line item to serve and redirects User to Marketer Ad Server (let’s assume the ad server determines a pre-bid SSP line item for this example)
  9. User calls Marketer Ad Server
  10. Marketer Ad Server returns final creative (via CDN)
  11. User calls trackback to SSP

* It’s hard to tell if everyone or no one actually runs an auction with their header tags because everything happens quite fast relative to your standard exchange process.  My sense is that there is either some kind of estimation process vs. a real auction, or some fancy stuff happening with the SSP’s CDN, but without the product people or engineers from these companies actually telling me what happens it’s impossible for me to know.  Here’s hoping a few visit the comments section on this article.  The important point is that the SSP determines a value for the impression that the publisher can use in their ad serving decision process. How precisely that happens and if it’s better / worse than the standard auction process is an open question. (more…)

Header Bidding: Holistic Ad Serving Is Here

It’s been nearly three years since I first wrote about the concept of holistic ad serving – the idea of seamless yield management across sales channels, namely direct sold and programmatic – but in the last six months or so this idea has quietly gone from the drawing board to reality via a mechanism known in the industry as ‘header bidding’, ‘tagless’, ‘advance bidding’ or ‘pre-bid’ integrations because they rely on a piece of JavaScript in the publisher’s header to work. Header bidding is a revolutionary enhancement to the way publishers have historically integrated with their SSP partners, and has wide ranging implications for nearly every part of the RTB ecosystem. The future is now!

Header bidding integrations, or something very close to it have been common for years with retargeting networks like Criteo seeking ‘first-look’ relationships with publishers, but it’s only recently that the major sell side platforms started to integrate this way. The major difference between the retargeters and SSPs is that retargeters have all the demand within their own platform, while the SSPs and Ad Exchanges rely on an auction with external parties to fill impressions. (more…)