If you are into Programmatic buying or if you are interested to learn more about the Supply side jargons , you might have heard about the buzzwords like Header bidding and Waterfalling (aka Daisy chaining). There is lot of content available , much of it is difficult to understand.So, I will try to explain it in simple terms here.
Lets start with Waterfalling (aka Daisy chaining) .What is it exactly. Lets say , you are a Publisher, your main goal is to sell all your Inventory and make revenue. You are keen to sold the unsold Inventory and still looking to make up for the cost. You will work with the networks that offered the highest rates first, before working with those that offered lower rates until they monetized every impression. Hence, the term “waterfalling.” evolved.
Waterfalling is a technique publishers use to maximize both the pricing and sell-through rate of their inventory. It lets publishers move their inventory from one market to the next to optimize for revenue.
So how does it looks like?
In the above figure, you can see how Publishers move from one SSP to another in order to maximize selling of the unsold inventory. This is why it is termed as waterfall.
The overall process is complex and if wrongly implemented, it cost a loads of money to the Publishers.
To overcome the problems of Watefalling , Header Bidding was introduced. What is Header bidding, " Header bidding is an advanced programmatic advertising technique that serves as an alternative to the Google “waterfall” method. Header bidding is also sometimes referred to as advance bidding or pre-bidding, and offers publishers a way to simultaneously offer ad space out to numerous SSPs or Ad Exchanges at once." as per Lotame
Header Bidding gives the Publisher the power to avoid the sequential strategy that Google DFP uses and allows the Publisher to have a simultaneous auction from all the bidders.
Publishers need to put some Javascripts (yes the page load definately increases in this case) and when the full page loads, all the SSPs and Ad exchanges will be informed to bid before any other outside bidding.
It has some advantages like- Increased revenue, increased control,Increase fill rate etc. However as the javascripts are implemented, it also increase latency and increases the work for the publisher and obviously increased infrastructure cost.
To understand the difference in one image, please see below
Thanks for reading!
Sarang
Lets start with Waterfalling (aka Daisy chaining) .What is it exactly. Lets say , you are a Publisher, your main goal is to sell all your Inventory and make revenue. You are keen to sold the unsold Inventory and still looking to make up for the cost. You will work with the networks that offered the highest rates first, before working with those that offered lower rates until they monetized every impression. Hence, the term “waterfalling.” evolved.
Waterfalling is a technique publishers use to maximize both the pricing and sell-through rate of their inventory. It lets publishers move their inventory from one market to the next to optimize for revenue.
So how does it looks like?
In the above figure, you can see how Publishers move from one SSP to another in order to maximize selling of the unsold inventory. This is why it is termed as waterfall.
The overall process is complex and if wrongly implemented, it cost a loads of money to the Publishers.
To overcome the problems of Watefalling , Header Bidding was introduced. What is Header bidding, " Header bidding is an advanced programmatic advertising technique that serves as an alternative to the Google “waterfall” method. Header bidding is also sometimes referred to as advance bidding or pre-bidding, and offers publishers a way to simultaneously offer ad space out to numerous SSPs or Ad Exchanges at once." as per Lotame
Header Bidding gives the Publisher the power to avoid the sequential strategy that Google DFP uses and allows the Publisher to have a simultaneous auction from all the bidders.
Publishers need to put some Javascripts (yes the page load definately increases in this case) and when the full page loads, all the SSPs and Ad exchanges will be informed to bid before any other outside bidding.
It has some advantages like- Increased revenue, increased control,Increase fill rate etc. However as the javascripts are implemented, it also increase latency and increases the work for the publisher and obviously increased infrastructure cost.
To understand the difference in one image, please see below
Thanks for reading!
Sarang
Hey there,
ReplyDeleteNice blog
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