Header bidding is an advanced programmatic advertising technique that allows publishers to offer their ad inventory to multiple ad exchanges and networks simultaneously, rather than sequentially. Here's a simplified breakdown of how it works:
Header Bidding Wrapper: A piece of JavaScript code, known as the header bidding wrapper, is placed in the header of the publisher's webpage. This wrapper manages the auction process.
Ad Requests: When a user visits the webpage, the wrapper sends ad requests to multiple demand partners (ad exchanges, SSPs, DSPs) at the same time.
Bidding Process: Each demand partner responds with a bid for the ad space. This happens in real-time, typically within a few milliseconds.
Highest Bid Selection: The wrapper collects all the bids and selects the highest one.
Ad Server: The highest bid is then sent to the publisher's ad server, which decides which ad to display based on the winning bid.
Ad Display: The winning ad is displayed to the user on the webpage
This process increases competition among advertisers, often leading to higher revenue for publishers. It also provides more transparency and control over the ad inventory.