If you are familiar with the ad-tech industry, you have probably come across the term “header-bidding” and also now starting to hear the words “Video Header Bidding”.

What’s Header Bidding?

Header bidding is an advanced programmatic method (also known as bidding or pre-bidding).
This method allows publishers to sell their inventory to multiple demand sources simultaneously.

Header bidding is set up by implementing a JS code within a website’s section.
The script calls upon different demand partners to bid on the request (given by the publisher). The process is limited to a specific time frame chosen by the publisher, and the highest bid wins.

The technology emerged in 2015 and has since become the ultimate method for programmatic advertising. Up until recently, header bidding was used mainly in display advertising, but in recent days, it was also adopted to video formats, and SelectMedia was one of the pioneers to embrace it within our echo system.
Before header bidding was available in the Ad Tech industry, publishers relied on the ‘Waterfall’ method. This traditional programmatic method of selling inventory – calls each demand source individually, one after the other, regardless of the bidding offer.

However, This Method Posed Significant Downsides for Publishers:
• The first bid to meet cost requirements gets the deal, instead of the highest bid offer.
• There is no transparency on CPM in real-time.
• Waterfall structures require a lot of maintenance.
• Increases latency on publisher sites.
• A large percent of inventory that fails to bid on time is lost.
The bottom line is – with the ‘Waterfall’ model, the publisher loses revenue.
Thus, entered other solutions like header bidding – bringing maximized ad revenue, and a fair auction for advertisers, as it allows competing demand sources to bid simultaneously, making it a win-win situation for both publishers (who receive higher bids) and for advertisers (who get a fair chance to bid on quality inventories).
Although the ad waterfall model is still highly used, since 2017 header bidding became the most beneficial and preferred choice by publishers.

The Missing Link
While the ad display realm was enjoying the benefits of header bidding technology, there was still a missing piece to provide video ads with the same advantages display ads were getting with header bidding.
Video ads did not have header tags for bidding and therefore could not enjoy the header bidding technology. To bridge that gap, new players arose in the advertising field.
One of these main players is ‘Prebid.js’.
Prebid.js -is the most used Header-Bidding “wrapper” in the industry, most likely because they provide a simple solution for Video Header-Bidding.

By implementing Prebid’s code the advertiser can serve videos on a wide range of video players which are integrated with Prebid’s various adapters, and so publishers receive demand and optimization for video ads.

Why Video Header-Bidding Is the Next Big Thing
Video ads are gaining momentum in the advertising world, as they are known to be more engaging, allowing creative and compelling storytelling that captivates the audience. This situation highlights the publisher’s need to serve more video ads and maximize their potential revenue.

Video-Header Bidding Helps Publishers Capitalize on Video Ads By:
• Providing better ad fill rates for video inventories.
• Maximizing revenue by increasing video demand.
• Allowing monitoring of demand partners and their performance.
• Bypassing Google’s AdX privileged position to outbid competitors.

According to the ‘eMarketer’ report – by 2023 digital video will exceed the worldwide average. Over 39% of ad impressions are estimated to come from digital video viewers, with Asia-Pacific region taking the lead.
As video campaigns demand and success continues to skyrocket, more and more publishers are looking for solutions to optimize their video demands.
SelectMedia is a full-stack technology solution that provides a holistic solution for publishers, including display and video header bidding solutions, that make direct deals easy with a simple setup. Established in 2012 by a veteran team of digital advertising professionals, SelectMedia partners with the industry’s most respected publishers and advertisers and is widely considered one of the most trusted video and mobile technology platforms globally. From its headquarters in Tel Aviv and offices in Singapore, Thailand, and other countries across Asia, SelectMedia serves the largest brands and agencies in Asia and beyond. We are always improving our technologies and focus on delivering the right solutions for our clients.

This article was written by Julie Nevo, Project Manager and Technical writer professional at SelectMedia.