If you’re serving video ads on your site, then video header bidding is a must.
Similar to header bidding for display ads, video header bidding allows multiple advertisers to compete for your video ad inventory, significantly driving up prices.
That’s why in this article, we’re going to do a deep dive into video header bidding. We’ll discuss what it is, its pros and cons, and how it differs from display ad header bidding.
What is Video Header Bidding?
Video header bidding is an advanced programmatic technique that allows publishers to auction their video ad inventory to multiple advertisers simultaneously. This auction helps publishers get the best price for their inventory and increases the competition among advertisers.
Video header bidding serves as a robust solution to the previously used waterfall method, which allowed ad calls to be made one by one to demand partners, leading to reduced revenue.
Why is Video Header Bidding Important?
Video header bidding is critical for publishers because it increases revenue, enhances ad quality, improves user experience, and provides business resilience.
It does so by allowing simultaneous bidding, ensuring the best price for each impression, and accommodating changing market conditions.
This new method offers a more sophisticated way to manage ad space and has rapidly become an essential tool in the video advertising industry.
Two Types of Video Header Bidding: Client Side and Server Side
Client-Side Video Header Bidding
This method places a header bidding wrapper in the header of the website. Upon an available impression, the wrapper calls out to demand partners, conducting an auction on the user’s browser.
Once a bid is selected, the wrapper signals the ad server to display the video ad.
Server-Side Video Header Bidding
Rather than hosting the auction on the user’s browser, server-side bidding takes it to the server. This means a faster page load time and improved user experience.
What’s Better, Client-Side or Server-Side?
The client-side vs server-side debate is still alive and kicking, and there’s enough information on the topic to fill a full article.
Actually, we’ve covered the whole client-side vs server-side header bidding debate in a separate article. To keep things streamlined here, we suggest checking out that other piece for all the details you need.
Advantages of Video Header Bidding
Simultaneous bidding increases the opportunity for higher bids, which can significantly increase publishers’ CPMs.
Increased Fill Rates
Simultaneous bidding ensures that there is always a buyer, resulting in higher fill rates and less unsold inventory.
Video header bidding gives publishers more insight into the bidding activity and the advertisers involved, allowing for more informed decisions and a clearer understanding of market dynamics.
Business Resilience and Adaptability
Working with multiple demand sources simultaneously provides flexibility and a safety net against sudden market changes.
Disadvantages of Video Header Bidding
Implementing video header bidding requires a more complex setup. Publishers must carefully select the right technology partners and be prepared to handle any latency issues.
Potential Latency Issues
Video header bidding can introduce delays in ad loading, which may negatively affect user experience. Optimizing the number of demand partners and managing timeouts is crucial to maintaining a seamless experience.
5 Best Practices for Video Header Bidding
- Test & Optimize: Regularly review and modify your setup.
- Set Realistic Floor Prices: Balance pricing to avoid losing bids or money.
- Use a Reliable Header Bidding Wrapper: Select one that integrates well with your existing server and provides accurate reporting.
- Choose Demand Partners Carefully: Research to find reputable partners.
- Focus on User Experience: Monitor ad load times and relevance.
Difference Between Header Bidding for Display Ads and Videos
Though similar in concept, video header bidding differs from display header bidding mainly in execution.
Video header bidding is more complex due to the need to manage multiple elements like video player, file size, format, and more. Display advertising is typically more straightforward, with fewer variables to manage.
How to Implement Video Header Bidding
Implementing video header bidding is an intricate and time-consuming process. That’s why we recommending partnering with a trusted and reliable ad management company that can not only implement but optimize your video header bidding.
Feel free to contact us today to see how we can help.