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Header Bidding Definition
Header bidding is a programmatic advertising method that allows publishers to offer inventory to multiple demand sources at the same time before calling their ad server. It increases competition, improving ad revenue and transparency compared to traditional waterfall setups.
How Header Bidding Works
- JavaScript code is placed in a website's header.
- Multiple demand partners submit bids simultaneously when a page loads.
- The highest bid competes with direct-sold ads in the ad server.
- Maximizes yield by increasing auction competition.
Example of Header Bidding
A publisher implements header bidding with several SSPs, boosting CPMs and revenue by increasing real-time competition.
Why Header Bidding Matters in Advertising
- Increases competition for ad impressions, raising publisher revenue
- Provides more transparency in the bidding process
- Reduces reliance on a single demand partner
- Enhances efficiency in programmatic advertising
