is header bidding right for you?terms • ssp: allows publishers to connect their inventory to...
TRANSCRIPT
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Is Header Bidding Right for you?
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Natalie Milne, VP, Content
Maple Media Ltd.
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Header Bidding
• How is your inventory monetized right
now?
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Introduction - Outline
• Introduction
• How Did We Get Here
• Header Bidding in Depth
• Implementation
• Future of Header Bidding
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Terms
• SSP: Allows publishers to connect their inventory to multiple exchanges at once (AdX, AppNexus).
• DSP: Allows buyers to manage multiple ad exchange accounts through one interface (TradeDesk).
• Ad Exchange: A digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions. They’re most often used to sell display, video and mobile ad inventory.
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Introduction – Before Header Bidding
• Water falling
• Impressions filled based on a
pre-determined priority
• Priority based on historical
averages
• Most publishers do this
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Introduction – Header Bidding
• Auction in the site’s header
code
• Each demand source submits a
bid
• Publishers can prioritize above
direct
• Prioritize based on the real time
value of each impression
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Introduction – Why Is This Important
• Publishers can sell each impression at the best price
– Puts all demand partners on the same level to determine an
impression’s true value
• Publishers control the auction
– Make changes in their best interest
• Advertisers now have access to premium inventory through
programmatic channels
– Inventory which was only available through direct sales
– RTB demand can now have a first look at inventory
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How Did We Get Here – Timeline
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How Did We Get Here – Ad Networks
Rise of Ad Networks (1996 – Present)
• Monetize impressions not sold directly by aggregating a number
of publishers
• Ad Network buys for 5 to 10% of the publisher price
• Ad Network’s resell to buyers as a direct sale
– No real time bidding
Issues of Ad Networks
• No one ad network wants all your impressions
• Need to daisy chain multiple ad networks
• Results: page latency, bad user experience, high ad server
discrepancies, difficult billing and diminishing publisher ad sales
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How Did We Get Here – Ad Exchanges
Rise of Ad Exchanges (2005 – present)
• Higher CPM’s for publishers
• Sellers auction inventory through one redirect
– Simpler implementation
– Improved page latency
• Advertisers can use data to bid on impressions
• Better transparency in pricing
• Examples: Google AdX (Launched 2005), The Rubicon
Project (2007), AppNexus (2007)
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How Did We Get Here – Ad Exchanges
Issues of Ad Exchanges
• Ad Exchanges are not compatible with each other
– Advertisers across multiple exchanges could buy your inventory
if it was available to them
– Publishers don’t see the true value of each impression
• Google has an unfair advantage
– Google ad server (DFP) will favour Google’s ad exchange
• Daisy chain multiple ad exchanges
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How Did We Get Here – Waterfall
• Technique to manage demand
sources (daisy chaining)
• Priority based on historical averages– Reduces publisher revenue
• Inefficient– Impressions passed back to ad server if not
filled
– Lose impressions each time
– Appears to be lower quality inventory
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Header Bidding – How it Works
• User requests a web page
• Header calls each demand
partner (“Hey, who want’s this
impression!”)
• SSP’s conduct their own internal
auction submitting their bid– Second price auction
• Direct buyers (Amazon, Criteo)
submit their bid– First price auction
• Bids collected in the headerHeader Auction
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Header Bidding – How it Works
• Highest bid sent to ad server
• Ad Sever determines which line
item to serve
• Creative is called
• Creative is shown on screen
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Header Bidding – Positives
• Increase Revenue
– First price auction
– More partners = higher
CPM’s
• Improve Yield
– Less impressions lost by
not passing back
Chart Source: http://prebid.org/assets/images/blog/experiments/revenue.png
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Header Bidding – Negatives
• Increase Ad Load Time
– Content loaded first as a workaround
– Ad appears much later
• disruptive user experience
– More partners = longer latency
• Complicated Implementation
– 10X to 100X more complicated
Demand Partner Load Time
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Implementation
• Is Header Bidding a hack?
– Goal to create a unified auction outside of the
ad server
• Passing the highest bid to the ad server as
a key value
– Ad server finds the line item for that demand
partner and bid value
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Implementation – Line Item Setup
• One line item per
demand partner, per
creative, per size and
per bid value
• Most time consuming
part
Chart Source: http://www.adopsinsider.com/header-bidding/header-bidding-holistic-ad-serving/
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Implementation – Two Categories
• Manual
– Pro: Free, Open Source
– Con: lots of work
– Examples: Prebid.js, Pubfood.js
• Automated/Scripted/Wrappers
– Pro: Simpler implementation
– Con: Work with a third party and pay fees
– Examples: District M, ClearPier
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Implementation – What’s right for you?
• Large or small publisher
• Do you already have demand partners?
• Resources to implement and manage this
• Would a 30% lift make a difference?
– Only on available impressions
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Implementation – Maple Media Results
• SavvyMom– AdX (pre-HB) - $0.66 CPM
– HB - $2.42 CPM
– AdX (post-HB) - $0.82 CPM
• BeautyDesk– AdX (pre-HB) - $0.81 CPM
– HB - $3.95 CPM
– AdX (post-HB) - $0.89 CPM
• Most of our other publishers follow the same trend.
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Future of Header Bidding
• Header Bidding is the next step in RTB
– More value to publishers
– Access to premium inventory for advertisers
• Still implemented as a workaround on
legacy ad servers (primarily DFP)
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Future of Header Bidding
• What’s Next?
– Alternative Ad Servers • Designed for transparency and RTB
• Allow publishers to conduct a unified auction (Header
Bidding)
– Server to Server connections• Reduces ad latency compared to conducting the auction on
the browser
• Less transparency
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Takeaways
• Is Header Bidding Right for you?
– What size of publisher are you?
– If you doubled your revenue is it worth the
effort?