Introduction to Server Side Header Bidding (SSHB)

What is Server-Side Header Bidding?

Server-side header bidding (SSHB) is an advanced form of header bidding in programmatic advertising. In this form, the auction process occurs on an external server instead of within the user’s browser. This shift to server-side bidding helps reduce latency, enhances the performance of rich media ads, and increases the number of potential bidders by connecting the publisher to more demand sources, such as ad exchanges and SSPs. In essence, SSHB offloads the computational burden to a dedicated server, speeding up the overall process.

 

Evolution from Waterfall Model to Header Bidding

Before the advent of header bidding, the waterfall model was the primary method for ad auctions. In this model, publishers presented their inventory to advertisers sequentially, often leading to inefficiencies and lower revenues. Header bidding emerged as a solution, allowing simultaneous bidding from multiple advertisers. However, the initial client-side version led to slower page loads. Server-side header bidding evolved as a solution, solving the latency issues associated with client-side header bidding by moving the auction process of the browser.

 

Client-Side vs. Server-Side Header Bidding

While client-side header bidding operates within the user’s browser, server-side header bidding happens on a remote server. The key difference lies in latency and performance. Client-side methods can overwhelm the browser, increasing page load times, while server-side methods significantly reduce this burden. However, client-side setups often offer better transparency and user identification capabilities, whereas SSHB can face challenges in tracking users due to cookie-matching

 

How Server-Side Header Bidding Works

Technical Overview

In server-side header bidding, the process begins when a user visits a website. The publisher’s JavaScript sends a request to the SSHB vendor’s server, which then communicates with multiple demand partners, such as SSPs and DSPs. These partners respond with bid offers, and the server selects the highest bid and sends it to the publisher’s ad server for display.

 

User Journey: From Browser to Ad Display

The user’s browser sends a single request to the SSHB server, streamlining which streamlines communication with multiple bidders simultaneously. This process minimizes the need for the user’s browser to handle multiple bid requests. Once bids are evaluated, the highest bidder is selected, and the ad server delivers the ad to the user, ensuring a seamless experience with reduced load times.

 

Key Components: AdX, DSPs, SSPs

The SSHB ecosystem involves various key players:

• AdX (Ad Exchange): Connects advertisers with publishers, facilitating the bidding process.
• SSPs (Supply-Side Platforms): Help publishers manage, sell, and optimize their available ad space.
• DSPs (Demand-Side Platforms): Allow advertisers to bid on ad inventory in real-time real-time.

 

Advantages of Server-Side Header Bidding

Reduced Latency

One of the primary benefits of server-side header bidding is its ability to reduce latency. Since the auction occurs on the server rather than in the browser, the load on the user’s device is minimized, resulting in faster page load times and improved user experience.

 

Better Performance for Video and Rich Media Ads

Server-side header bidding is particularly effective for rich media and video ads, where larger files and more complex bidding processes can slow down performance. With SSHB, the auction process takes place off the client, enhancing the overall performance of video ads and improving the user’s experience.

 

Increased Number of Bidders

By connecting the publisher to more demand sources, SSHB can increase bid competition. The ability to handle a larger number of bidders without affecting page load times means more opportunities for publishers to maximize their ad revenues.

 

Enhanced Scalability

With SSHB, publishers can integrate more demand partners without worrying about overloading the user’s browser. This scalability is a key advantage, especially for larger publishers looking to grow their ad inventory and partnerships.

 

Disadvantages of Server-Side Header Bidding

Lack of Control and Transparency

A major downside of server-side header bidding is the potential lack of transparency. Since the auction happens on an external server, publishers may have less visibility into the bidding process and who participates. This can lead to concerns about fairness and control.

 

User Identification Challenges

SSHB faces limitations in cookie matching, which is a key factor in user identification for targeted advertising. As the process occurs off-site, matching users to the correct ads becomes more difficult, potentially reducing the effectiveness of targeted campaigns.

 

Technical Complexity

Implementing SSHB can be technically complex, requiring expertise in server configurations and programmatic advertising. Smaller publishers may find it difficult to manage the technical aspects of running a server-side auction.

 

Potential Revenue Declines

In some cases, SSHB’s cookie-matching challenges and transparency issues can lower ad revenues. Without precise targeting, advertisers may offer lower bids, which can reduce the publisher’s earnings.

 

Key Solutions and Tools for SSHB

Google’s Open Bidding

Google’s Open Bidding is a prominent server-side header bidding solution that enables publishers to connect with multiple demand partners in real-time in real-time. It offers a transparent and efficient bidding process for maximizing ad revenue.

 

Exchange Bidding Dynamic Allocation (EBDA)

EBDA is another SSHB solution offered by Google, designed to enhance auction efficiency by allowing SSPs to bid alongside direct sales campaigns, ensuring the publisher gets the highest value for their inventory.

 

Prebid.js: An Open Source Solution

Prebid.js is an open-source header bidding wrapper that supports both client-side and server-side header bidding. It is a versatile tool used by publishers to manage auctions across different demand sources, ensuring flexibility and transparency.

 

Google Ad Manager

Google Ad Manager integrates SSHB capabilities and enables publishers to manage and optimize their ad inventory seamlessly. It offers robust reporting features, making it easier for publishers to monitor their auction performance.

 

Implementing Server-Side Header Bidding

Steps to Set Up SSHB

To implement SSHB, publishers need to choose a header bidding solution, set up the necessary server infrastructure, and integrate their ad partners. Proper testing and monitoring are essential to ensure the setup is optimized for performance.

 

Best Practices for Optimization

Optimize SSHB by balancing the number of bidders to avoid overloading the server, ensuring efficient user identification processes, and continuously testing for latency improvements.

 

Common Challenges and How to Overcome Them

The main challenges include cookie-matching issues, technical complexity, and the need for transparency in the bidding process. Overcoming these requires leveraging robust tools like Prebid.js and focusing on transparency.

 

Future Trends in Header Bidding

The Rise of Hybrid Header Bidding

A growing trend is the use of hybrid header bidding, in which client-side and server-side auctions are combined to optimize performance based on the publisher’s specific needs.

 

Innovations in User Identification

Innovations in user identification, such as unified ID solutions, aim to overcome the cookie-matching limitations in SSHB, allowing for more accurate targeting.

 

Impact on Publisher Revenue Models

As SSHB continues to evolve, it will likely have a significant impact on how publishers approach their revenue models, offering more flexible and scalable solutions.

 

Waytogrow’s attitude

In the world of digital advertising, WTG stands out for its innovative approach to monetizing ad space. The company uses two powerful technologies simultaneously: Open Bidding (OB) and Prebid.js-based client side header bidding. This combination is not accidental – it allows WTG to maximize available demand for ad space. Open Bidding provides broad access to multiple ad networks, while header bidding with Prebid.js ensures transparency and efficiency of client-side auctions. This allows WTG to benefit from as many sources of demand as possible, optimizing revenue and ensuring that every ad space is used in the most efficient way. This strategy not only increases potential revenue, but also improves the quality and relevance of the ads served, which translates into a better user experience.