What is Video Header Bidding and How Does it Work?

What is Video Header Bidding and How Does it Work?Video header bidding is a programmatic technique that gives publishers the opportunity to offer inventory to multiple ad exchanges at the same time before making calls to their ad servers directly in the video player.

It was created as the former dominant practice of selling ad inventory waterfalling left a lot of money on the table. A study by Digiday states that through header bidding, publishers are increasing CPMs by as much as 50%.

But there’s a catch, each option has its merits and understanding which one works best for your business can be a bit tricky.

@MOW_Player meditates demand through a direct, server-side integration with an SSP. Click To Tweet

Nowadays a majority of advertising tags do not have a 100% fill rate. From that fact comes a need for publishers to sell the remnant inventory in its entirety and they use waterfalling and header bidding to do it.

What is Waterfalling?

The now considered obsolete or auxiliary system of selling ad space, waterfalling is a flawed tactic for auctioning ad space, more fitting for the analog world in its principle. Waterfalling is a tactic through which publishers offer the ad space to different ad networks via a pre-established hierarchy. A faulty approach as the position in the hierarchy is determined by the average of previous rates.

The hierarchy would usually group potential buyers in three different tiers, with Tier 1 buyers getting to bid for the ad space first. It would mean that they would get the right for the ad space if they would just match the publisher’s price floor. Disregarding that there might be a buyer in Tier 3 that would pay twice or three times as that. Tier 2 and 3 buyers are left outside of the auction room.

That way, a publisher may offer an ad space to its former top buyer, and ignore a new one that may be offering a much higher rate for today’s impression. Hence, revenue is not maximized.

What is Video Header Bidding?

An improved process of offering ad spaces which allow multiple ad exchanges to auction for impressions in real-time.

It’s a revenue enhancing system that levels the playing ground for the buyers of ad space and allows the publisher to enjoy the benefits of a more competitive, bigger market.

How Does Video Header Bidding Work?

As an advertising innovation, video header bidding is more complex than the display header bidding due to nature of the video itself. Video files are larger, players are more complicated than regular web pages, and the ad is only displayed when the play button is pressed. This means that the ad server has less time to pick which ad it’s going to show. Which could influence the loading time of the video.

This is why MOW Players meditates demand through a direct, server-side integration with an SSP (Seller Side Platform). With this approach, the decision on which ad to display happens before the viewer even renders the video, which makes for a smooth, undisrupted viewing experience.

Basically, we are handling integration with ad servers, partners, and networks behind the scenes, creating the best advertising environment for you to maximize your revenue. You can check how MOW Player is helping you to monetize your videos.

There is no excuse to pass upon video header bidding as it is an easy-to-use tool which guarantees a rare feat of maximizing revenue.

With our built-in solution, you won’t have to.