Header bidding, an emerging programmatic technique used by publishers to increase advertising yield on their inventory, is the latest craze enveloping the media and advertising industry.
As a recap, header bidding technology has been ad tech’s response to Google’s stranglehold on ad inventory via its DoubleClick Bid Manager (DBM). What header bidding does is enable Google’s competitors to leapfrog to the front of the queue to compete for the best ad spaces. Header bidding helps publishers get the best price for their ad inventory because the technology enables multiple exchanges to compete with each other — and a publisher’s in-house sales team. And this drives up ad rates.
Back in August of this year, social media giant Facebook started rolling out header bidding with a handful of publishers, including big names like USA Today and Hearst; entering the arena to challenge Google’s DoubleClick and expand its Facebook Audience Network (FAN).This strategic move could present a significant challenge to the upperhand Google DoubleClick has on the online display market by letting Google’s rivals skip ahead to claim ad slots.
While it’s too soon to see what will come of Facebook’s push for header bidding, it’s become increasingly clear the social media behemoth has no problem stepping up to the plate to vie with demand sources like Google for the best access to publishers’ users and inventory.