Header bidding is a programmatic advertising technique that empowers publishers to simultaneously offer their ad inventory to multiple advertising platforms before determining the winning bid. Unlike the sequential waterfall method, header bidding creates a competitive auction environment by allowing multiple demand sources to compete for ad space in real-time. This process, executed within a webpage's header, often yields higher ad revenue for publishers due to increased competition and transparency.
While header bidding offers advantages in maximizing revenue and transparency, server-side bidding presents an alternative approach. By centralizing the auction process on a server, it can potentially reduce page load times. However, header bidding typically provides greater competition and control over the bidding process.
A publisher employs header bidding to sell ad space. Numerous advertising platforms submit bids simultaneously. The highest bid wins the auction and the corresponding ad is displayed on the publisher's website.