Hybrid Header Bidding Increases Revenue by 18%, New Research Finds

Hybrid Header Bidding Increases Revenue for Publishers by 18%

Hybrid header bidding, an innovative technology that blends client-side and server-to-server header bidding strategies, has been shown to significantly increase revenue for publishers, MarTech Series reported

The research, conducted by Adnimation, surveyed over 100 publishers that utilized our proprietary hybrid header bidding technology for a year.

The extensive research showed that the hybrid model generated an 18.3% increase in revenue for our partnering publishers.

What is Hybrid Header Bidding?

Hybrid header bidding is an advanced method of header bidding, a popular programmatic advertising technique that initiates an early-stage auction and sends bid requests to demand partners in real time.

This enables publishers to add more advertisers and leverage competition into higher prices. 

To understand what hybrid header bidding is, you need to first understand the two header bidding methods: client-side and server-to-server (S2S).

Client-Side Header Bidding

Client-side header bidding takes place within the user’s web browser via a JavaScript code that is integrated into the publisher’s website.

This method was the first header bidding solution in the market, and it is currently the solution used by most publishers.

Client-side generally yields higher CPMs (cost per mille) because it allows advertisers to access user data and deliver more personalized ads. However, this approach can also slow down the page loading time. It also has limitations in terms of the number of demand partners and call requests it can accommodate.

Server-to-Server Heading Bidding

S2S header bidding occurs on an external server, rather than on the user’s browser.

Compared to client-side, it is more complex and requires more advanced technology.

The S2S process is quick than client-side because it operates on an external server, which leads to faster page load speeds and higher fill rates. S2S can also accommodate a significantly larger number of demand partners and call requests. However, S2S generally yields lower CPMs as it lacks access to user data.

Hybrid Header Bidding

Our developers created a unique technology that combines the advantages of both client-side and S2S.

This innovative technology decides in real-time how to distribute requests between the two methods and initiates parallel auctions on both the client side and server side.

This enables publishers to leverage the high CPMs of client-side header bidding, as well as the speed and fill rates of S2S header bidding.

Our Research

Martech series article Adnimation

Our year-long study surveyed more than 100 publishers whose websites utilized hybrid header bidding.

We found that client-side header bidding produced a 9% higher CPM compared to S2S. However, S2S header bidding still led to an overall revenue increase of 18.3% due to a significant increase in fill rate.

In other words, even though S2S header bidding generated slightly lower CPMs than client-side, it still managed to increase the bottom line revenue by almost 20%. This is because S2S was able to capture bids that would have been missed if only client-side header bidding was used.

For example, one of the surveyed publishers generated $181,846 in revenue from client-side header bidding over the course of the year. By incorporating hybrid header bidding, the publisher was able to generate an additional $45,821, or 20.1%, in revenue.

Ongoing Optimization

Like most technology, it’s not enough to simply implement the solution and forget about it.

Hybrid header bidding requires careful implementation and effective ongoing management to determine how to allocate queries and utilize the technology.

It’s a complex process, but when done correctly, it can significantly increase your revenue.

To learn more about how hybrid header bidding can help you, get in touch with us for a free consultation. 

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