Header Bidding Wins

Just as publishers were beginning to see increased revenues from the 2016 hack called “header bidding,” Google decided to get into the game. For a while, header bidding was a way around Google’s almost total control of real time bidding auctions. But now Google has released its own solution called Exchange Bidding to all publishers who use Doubleclick for Publishers. AdExchanger writes,

Exchange Bidding relies on server-to-server connections, which are faster than the page tags some header bidding solutions rely on, and lower latency improves ad viewability, and thus yield.

It’s also faster to install, with Exchange Bidding essentially a plug-and-play product compared to heavy development and collaboration required of publishers in header-bidding integrations. 

Meredith, an Exchange Bidding beta partner, said it joined because its pages loaded faster and because it consolidated exchange reporting within Google, which reduced measurement discrepancies with advertisers, Chip Schenck, the media conglomerate’s VP of programmatic sales and strategy, told AdExchanger last year.

 

Exchange Bidding, however, can’t be used by buyers who have preferred or guaranteed rates. The new product is only available right now for display ads, although it is useful for mobile web and in-app ads. If you are a publisher who relies on video inventory, this is not for you.

We were one of the first to offer header bidding, and that was about two years ago. Before that, Google  had a near monopoly on the auction market. According to an article in last summer’s Ad Age,  header bidding really shook Google up, and it began offering its own product as a test.  But it immediately ran into resistance, because it was trying to charge a 5% cut for the service. That’s been reconsidered, but in the meantime both Amazon and Facebook have begun to offer their own form of header bidding, forcing Google to play fair.

We think this is good for the industry as a whole, because Google’s monopoly turned out to be costly for publishers. What’s also good for the industry is the convergence among all the once high-flying ad tech companies, who charged publishers for services that did not add value.

This call comes just in time, because eMarketer predicts that 83% of digital spend will transact programmatically by 2019, and by 2020 digital spend will exceed all other forms of advertising spend combined.

The next thing we have to do on behalf of publishers is step up the filtering of non-human traffic and traffic to fake sites, and that is increasingly becoming a priority, especially through the widespread industry adoption of ads.txt.

We’re getting increasingly skillful at weeding out the negatives in our industry and focusing on providing a clean marketplace for digital publishers and demand side players to interact.