The Header Bidding Revolution, WTF Programmatic, December 2016
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The document discusses header bidding, which allows bids from demand sources to be considered concurrently rather than consecutively within the ad server. This has resulted in increased yields for publishers and more opportunity for clients to access inventory. Publishers are using header bidding successfully by changing demand prioritization, creating opportunities for preferred clients through "biddable guaranteed" setups, and gaining insights into latent demand and yield opportunities. While not a perfect solution, header bidding's impact on the programmatic marketplace is significant and its concept of concurrent decision making will continue to be built upon.
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The Header Bidding Revolution, WTF Programmatic, December 2016
- 1. The Header Bidding Revolution Digiday WTF Programmatic Chip Schenck VP of Data & Programmatic Solutions December 7, 2016 1
- 2. Meredith reaches 82mm women at every life stage and across her passions kraftrecipes.com comidakraft.com Meredith Digital
- 3. Meredith continues to invest in and acquire publishers & technology platforms to deliver scaled and quality audiences. REACHING 100MWOMEN 82MMONTHLY UVS 63%MILLENNIALS 2 3HISPANICS OUT OF 800DATA POINTS PER PERSON 100MCONSUMERS DATABASE OF MAGAZINE ACQUISITIONS & LAUNCHES MXM EXPANSIO N DIGITAL TECHNOLOGY DIGITAL DATA A Media Powerhouse
- 4. now future Ad Networks Ad Exchanges & SSPs DMPs Search 1990s Private Exchanges Automated Guaranteed Offline Targeting • Direct Mail • List Rental Email Marketing Reserved Display Content Exchanges Vertical Exchanges now future1990s PROGRAMMATIC PREMIUM DIRECT SOLD / GUARANTEED / RESERVED INDIRECT / PROGRAMMATIC / UNRESERVED Data Evolution Header Bidding on the scene
- 5. HEADER BIDDING: The ability to have bids considered concurrently – rather than consecutively – within the ad server, by applying a piece of Javascript to a publisher’s page
- 6. Near-Term Results Increased yield for pubs Increased consternation for agencies who promised programmatic as ‘price- efficient’ Increased opportunity for inventory access for clients
- 7. How Are Pubs Using Header Bidding Successfully? Changing demand prioritization1 2 3 Creating opportunities for preferred clients – “Biddable Guaranteed” Insights tool into latent demand and yield opportunities
- 8. Publisher Ad Server Different potential set-ups Ad Call PREMIUM DIRECT STANDARD DIRECT PREMIUM PROGRAMMATIC OPEN PROGRAMMATIC Monetization Partner HEADER RETURN—STANDARD $30 $24 $20 $16 $12 $8 $7 $6 $5 $4 $3 $2 $1 Is Open Competing with All? PMP set up as price or preference? What settings are the line items? a.k.a “The Waterfall”
- 9. How Are Pubs Using Header Bidding Successfully? Changing demand prioritization1 2 3 Creating opportunities for preferred clients – “Biddable Guaranteed” Insights tool into latent demand and yield opportunities
- 10. Key Takeaways Not a panacea – header bidding has its challenges, and should be part of a buying/selling strategy Market is changing fast: we will build on the concept of concurrent decisioning, not consecutive decisioning The pendulum swings both ways – but header bidding’s impact (good or bad) is here to stay 1 2 3
Editor's Notes
- Thank you to Digiday - Learn so much from peers Spoke recently and limited myself to one mention of HB… not so much today Change the language – from programmatic to biddable media From HB to…?
- Meredith has undergone transformation Huge growth in past couple of years, up to 82MM monthly uniques, nearly 20% growth y/y Some of world’s leading lifestyle and women’s brands
- Quietly been building out our tech stack, ad stack, and data capabilities I joined to help build a new data practice… Key aquisitions to make us among the most forward-thinking, leading publishers
- The Data Evolution is very much underway… What HB enables is more of a way of thinking about...
- Important to simply define HB What it is and is not…
- Its impact to date has been one of mixed results, depending on what side of the desk you are coming from…
- Changing your selling strategy/demand prioritization (e.g. When we launched 3 years ago, we immediately used it as a preference tool, not a yield tool) Creating separate business initiatives for preferred clients – Biddable guaranteed An insights tool into latent demands and yield opportunities (demand overhang reports – visuals attached)
- Changing your selling strategy/demand prioritization (e.g. When we launched 3 years ago, we immediately used it as a preference tool, not a yield tool) Creating separate business initiatives for preferred clients – Biddable guaranteed An insights tool into latent demands and yield opportunities (demand overhang reports – visuals attached)
- Not a panacea – has its worts, and should be used as part of a buying/selling strategy Remember that HB in current form is not where it will be in a short while – Google Exchange Bidding, S2S by other large tech players will build on the concept of concurrent decisioning, not consecutive decisioning – but remember, the ad server priortization capability (the waterfall) plays an important part based on your strategy) – USE AMAZON TOO (SERVER-TO-SERVER) 1) Instead of the ad server, but will also move to S2S (happening on the page (move to S2S, e.g., by Google, Amazon) – a real threat to the major ad servers of today, makes a DSP as ad server quite an interesting play 2) Big boys get smart and recognize an opportunity to re-assert dominance – like a horror film where you know the character is going to get it and they continue to make the same mistakes again and again. ‘don’t go in the house!’ – the equivalent is ‘ build it for the market’ and stop figuring out how you will own it The pendulum swings both ways – pubs are currently driving prices higher, but the market will figure out a way to balance out, and ultimately pubs who are relying on increased yield only as the opportunity from HB will be in for a rude awakening. buyers will eventually figure out a way to create price efficiency