Understanding and Leveraging Header Bidding for...

1 Page: OpenX ©2016 | All information is proprietary and confidential.

Understanding and Leveraging Header Bidding for Success

Presenter: Natrian Maxwell | All information is propriety and confidential.

Header Bidding is an integration on the publisher’s page that exposes each impression to programmatic demand before calling the publisher’s ad server. This means advertisers can dynamically compete for more of a publisher’s inventory in real-time and can see higher quality inventory within their ad stack.

<header script>

Header Bidding Defined

<adapter>


Publisher

•  Maximizes a seller’s control over their advertising setup, so they can prioritize all buyer demand efficiently within their ad server.

•  Increased access to higher quality inventory through existing programmatic integrations.

•  Increased audience reach and user profiling.

•  More scalable method of

buying inventory through Programmatic Direct and Private Marketplaces.

The Value of Header Bidding

Advertiser DSPs & Exchanges


Key Takeaway

Control for sellers and access to quality impressions at scale for buyers is what this technology is all about.


Advertisers found themselves locked out of opportunities due to publisher prioritization logic.

01

Reserved inventory was not accessible for advertisers making their purchases through programmatic pipes.

02

Advertisers had a tough time finding high value impressions at scale due to the limitations of the ad server.

03

Prior to Header Bidding


Ad Server Refresher

An Ad Server is a digital advertising delivery and decisioning technology that grew out of a paradigm where the impression inventory was reserved ahead of time, and ad prices were known to the buyer and seller up front.

Ad

Ad

The Ad Server Demand Side:

Direct Deal Partner 1

Direct Deal Partner 5


Real Time Bidding Refresher

Real Time Bidding (RTB) is a technology where inventory is not reserved ahead of time, and ad prices and the advertiser are not known by the seller up front, but rather decided dynamically in real time.

Let’s start the

bidding!


Attributes Ad Server Real Time Bidding (RTB)

Dynamic Pricing X

Fixed Pricing X X

Holistic Yield Management X

Auction Based Buying X

Ad Decisioning X X

Ad Server & RTB


Key Takeaway

Traditional ad servers have limited publishers ability to fully control how all buyers interact with their inventory through programmatic channels.


Private Marketplaces Emerge •  In order to deal with ad server inefficiencies,

advertisers discovered that the same technologies they have built, could also be used to discover, setup and transact through private marketplaces.

•  This change allowed publishers to open up

higher quality inventory to strategic buyers. •  Even though pricing and prioritization was

on par, advertisers lacked the ability to compete with “traditionally” direct sold campaigns. Select

Advertisers Select

Publishers

PMP


Publisher Monthly Inventory Pool After Header Bidding Solutions

Premium Inventory

Remnant Inventory

Mid-Tier Inventory

(High Viewability, high engagement) 700MM Impressions

(Medium Viewability and/ or medium engagement) 150MM impressions

(Low Viewability and/or low engagement) 150MM Impressions

Traditional Direct Deals

High Value Demand

First Look PMP

All Other Programmatic

1 Billion Impressions

Before Header Bidding Solutions Roadblocks

Header Bidding PMPs

Direct Deals/ Header Bidding Open Auction

All other Programmatic

Source: Adapted from As Header Bidding Rises, It’s More Important Than Ever To Understand The Waterfall (AdExchanger), by Paul Bannister, Co-Founder and EVP at CafeMedia.


Key Takeaway

HOW DOES HEADER BIDDING WORK ?


Header Bidding in the Ad Server 1.  In the ad server: One low

priority RTB line item becomes several that reflect pricing diversity.

Image

Result: Publishers can now use dynamic prices as a method to set priority within their ad server.

$1.00

$.01 $.02 $.03 $1.00

$.99 $.98

2.  Publishers can now set individual priority settings for each active line item created.

P12 $.03 P12 $.02 P12 $.01 P4 $.98

P4 $.99 P4 $1.00


How Bidder Works

User visits page with OpenX Bidder implemented

01 Bidder script directs ad request to the OpenX Ad Exchange to determine impression value

02 DSPs, consisting of various buyers, simultaneously bid on the impression

03

Highest bid is inserted in the ad request and is passed to the publisher’s ad server

04 The highest price wins the impression and the ad is served

06 Ad server has a list of all line items eligible for the ad request, including the bid passed from OpenX Bidder

05

<header script> <header script>

Ad Server Ad Server


Auction Scenarios

1Reserved line Item needs the impression

2Reserved line item may or may not need the impression

3Reserved line item does not need the impression

•  Reserved line items are not impacted by bid price. •  Line items are created based on fill goals and impression goals. •  If an impression is needed to fulfill a reserved campaign goal, the impression is allocated

automatically to the needed line item. •  Exchanges will not have a chance to win the impression.

•  DFP creates a temp CPM based on the reserved line’s current progress and sees if an eligible non guaranteed line can beat the temp CPM without interfering with the reserved line’s pacing goal

•  If the temp CPM is beaten, the Non Guaranteed line items can compete for the impression •  If the temp CPM is not beaten, the reserved line takes the impression •  Ad Exchange would need to beat both the reserved temp cpm and the non reserved cpm to win

•  If the reserved line does not need the impression, this inventory is sold to the highest bidder


Header Bidding Summarized

Enables RTB demand to break out of the waterfall and be implemented as separate line items in the ad server

HEADER BIDDING AD SERVER

The ad server evaluates all demand line items and selects a winner for the ad impression

ACCESS & YIELD Header Bidding gets publishers closer to holistic yield management & allows advertisers more access to higher quality impressions at scale


Shift to server side technology

Improved header bidding signals

New data insights and analytics

New pricing models for increased performance

Increased adoption of Programmatic Direct

01 02 03 04 05

LOOKING AHEAD


What have we learned?

ü Header bidding overview and benefits Access to premium inventory through programmatic pipes

ü Market challenges and factors for header bidding development Historic ad server priority settings limited access

ü The next 12 months The rise of programmatic direct


QUESTIONS?



Thank you

WEBSITE www.openx.com

PHONE +1-855-OpenX-4U (US Sales) +44-800-587-3690 (EU Sales)


APPENDIX



s

What You Will Learn

•  Ad Server Decisioning deep dive – Understanding the Priority Stack •  Dynamic Allocation – Understanding the 4 Dynamic Allocation settings

•  Container Tags – Addressing Latency Issues Server vs browser side solutions What challenges do they solve?

Coming Up: Header Bidding

Part 2


ADDITIONAL EDUCATION TOPICS 1. Programmatic Direct 2. Mobile Header Bidding 3. Fraud & Low Quality Inventory 4. Header Bidding 2.0 Product Deep Dive 5. Cross Device Identification

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