What is Header Bidding and Why is it Important in DOOH Advertising?

If you're in the world of digital advertising, you've likely heard the term "header bidding" thrown around quite a bit. But the truth is that header bidding is more than just a buzzword; it's a game-changing technology that empowers advertisers, publishers and media owners to reach new heights.

As an innovative technique backed up by the growing capabilities of programmatic technologies, header bidding constitutes a major shift in the supply chain dynamics for DOOH advertising ever since its emergence in the last few years.

But what is header bidding really about? Why has it emerged? Moreover, how is this technology impacting DOOH campaigns? In this article, we'll dive deep into the concept of header bidding and explore its significance in DOOH advertising, in order to comprehend why this is becoming a game-changer in the world of programmatic advertising.

Fair Play Across the Board: Understanding How Header Bidding Works

Header bidding is a programmatic advertising technique that allows publishers to simultaneously offer their ad inventory to multiple ad exchanges, also known as Supply-Side Platforms (SSP’s), before making a call to their ad server. In simpler terms, it's like inviting several potential buyers to bid on your ad space at the same time, ensuring that you get the best possible price for your inventory.

Traditionally, the waterfall method was used in digital advertising, where ad inventory was offered to ad exchanges sequentially, checking SSP’s for available bids one by one. This process often resulted in lower revenue for publishers, as they couldn't access the highest bidder for their inventory, and often had to lean on in-house or third-party development teams to build the most suitable ad exchange network for their campaigns, which delayed timeframes and was not really cost-effective.

Header bidding, on the other hand, levels the playing field by consolidating auctions for display, mobile and video buys into a single bid for online advertising, ensuring that all parties have equal opportunities to buy and sell.

This unfolds a win-win scenario for both purchasers and vendors: publishers get first-price options altogether in a unified auction, while ad buyers have more control and autonomy over budget allocation, thanks to the enhanced visibility and reporting options that enable them to make informed decisions about where and how their funds are utilized.

Programmatic For-The-Win: What Makes Header Bidding Important in DOOH Advertising?

Exploring the logic behind header bidding already provides some clear hints regarding the relevance of this technology for the DOOH advertising landscape. Still, its main benefits are worth mentioning. Let’s go over some of them to understand why header bidding is becoming essential and increasingly popular in DOOH advertising:

Real-Time Decision-Making

In the world of DOOH advertising, where digital screens are scattered across various locations, real-time decision-making is crucial. Header bidding enables advertisers to make split-second decisions on which ads to display on which screens, ensuring that the right message reaches the right audience at the right time. This level of precision is a game-changer for DOOH campaigns, as it allows for dynamic and contextually relevant content delivery.

Increased Revenue for Media Owners

For media owners, header bidding opens up new revenue streams. By allowing multiple demand sources to bid on their inventory simultaneously, media owners can secure higher CPMs (Cost Per Thousand Impressions) and fill rates. This means more revenue in their pockets, making their DOOH networks more profitable.

Enhanced Targeting

Header bidding also enhances the targeting capabilities in DOOH advertising. Advertisers can access valuable audience data from multiple demand sources, allowing them to tailor their campaigns more effectively. This results in ads that resonate with viewers and drive better ROI for advertisers.

Improved Transparency

Transparency is a hot topic in the advertising industry, and header bidding contributes to it significantly. With the simultaneous auction process, all stakeholders—publishers, advertisers, and media buyers—have a clearer view of the bidding process. This transparency builds trust and ensures fair competition among demand sources.

Unlocking DOOH Advertising's Potential with Header Bidding

With its capabilities to enable real-time decision-making, increase revenue, enhance targeting, and promote transparency, header bidding has become the cornerstone of successful DOOH campaigns. Key industry players have acknowledged header bidding as a dynamic and transformative technology that is here to stay, and those who harness its power will undoubtedly reap the rewards in the ever-evolving world of digital advertising.

So, if you are looking to drive your campaigns to success, take the next step in elevating your DOOH advertising efforts. Beeyond Media has experts who will assist you throughout the process to achieve the best results.