Header Bidding

Header Bidding, a simple Java Script inserted in publishers pages in order to improve the auction process to create a perfect media programmatic market place in selling and buying display and & advertising. 

 

 

What is a perfect market place in the first place? 

In a perfect market place we will have a large enough DEMAND from buyers competing on a SUPPLY that the buyers need. The supply will be available to the buyers that in return accept the offer that they are willing to pay in terms of quality & price (etc).

There are cases of mal practice and existence of un-natural market distractions that may impose a perfect market situation.

In todays Digital Ecommerce era we often forget tangible mechanisms so I will remind you how it actually work with a hands on example.

A cocktail bar owner wait for his turn at a tomato stand on an open market and is willing to buy 10 kg of fresh and mature tomato´s well needed to offer his famous Bloody Mary´s. He is willing to buy the best quality tomato’s at 6 euro/kg that is the limit in order to gain a good enough profit for his “priceless” cocktails.

Now just imagine if there is a method introduced by the open market owner where some few people will be able to get first in line and make the first pick before anyone else. These guys that cut the line usually pays a high price and are friends with the market owners. The owner of the tomato stand is pretty ok with this situation because it gives him steady revenue with regular buyers, and the rest “random” stuff is being auctioned by the rest of his customers.

The main problem with this system is that it creates a false market place. Just imagine when Mr. Cocktail gets a new type of exclusive clients willing to pay + 40 % for a Bloody Mary!! On top, with his new picky clients he will need the best quality tomato´s. Being in an auction bidding for left overs after the privileged guys have done the “tomato picking” will create a situation of loosing lots of opportunities. This definitely is a situation that neither the buyer nor the seller are interested in.

Why not change the situation completely the other way around?? Let the big crowd pre bid for the best tomato´s. Then when that is done, let the privileged guys buy the tomato´s at the price and quality agreed.

In programmatic media the whole “false judge” market set up has actually worked this way since the very beginning. The Ad Exchanges and SSP bids came in the second place, after the ad server had done its delivery, meaning that there is no TRUE auction. These ad serving “silos” have been caused by technical challenges but also because it benefited few and privileged actors.

Now after many years of acting as “false judges” in the display and video ad market things are slowly changing and the ad bidding is opening up dynamic allocation to outside demand. A clear sign that there was a need for improvement but a reminder that we need to be critical towards actors that are NOT media agnostic and use their privileged market dominance.

PUBLISHER, take control of your advertising offering enriched with DATA that the advertisers so badly need. You have worked hard to get where you are!!

If we avoid this structure thanks to a simple Java script code integration in the web page that is named “Header Bidding”, the Advertiser will be able to Access more valuable inventory and the Publisher gets a higher price.

Always keep in mind, that the meaning of MEDIA AGNOSTIC & NEUTRALITY is far more important that we might think. When ad tech and media interests get mixed up, things start to get confusing.

Adform.com is a technological company, neutral & media agnostic, that develops solutions that will enable improvement in the adtech ecosystem and a proof for that is that they today launched their header bidding solution for publishers.

Read Adform´s press release : Unlock New Demand with Adform Header Bidding for Publishers

More info : Header Bidding

 

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