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Elisabeth
Salway
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Background
Google
has announced that it will be launching a beta version of its header bidding
alternative, which will be known as Exchange Bidding Dynamic Allocation or EBDA
for short. Expected to launch in May 2017, the beta will be open to a select
few of its technology partners and hundreds of publishers.
Details and Implications:
The
term “header bidding” has long been discussed within the supply side of the
programmatic ecosystem. It refers to the
technology that enables publishers to make their inventory available to more
than one SSP or exchange simultaneously.
When a publisher inputs an advertising slot into its ad server, this
allows the SSP to run an auction on the back of the bid responses it gets from
the various DSPs it is integrated with.
Header bidding allows the same thing, but for multiple
marketplaces. It therefore increases
competition across the different market places, encouraging a fairer holistic
auction. The reason it’s referred to as
header bidding is because this code sits within the header of their sites.
The
launch of Google’s EBDA doesn’t have a direct impact on advertisers, which can
continue to work with supply partners and platforms (ie, programmatic and
non-programmatic) to deliver campaign impressions. However, there is a nuance that buyers should
consider. It’s pretty clear that
competition for impressions increases in this multi-access, real-time
environment. This will result in more
bids for available impressions and prices reflecting demand, as opposed to the
fixed price you may buy impressions for in a direct upfront buy – however, as
this is a bidding model based on the user and their data you will be able to better
understand the value of that user and thus what you should bid for them. This
will result in a fundamental shift in how buyers negotiate with their supply
partners. This competitive environment
is fundamentally enabled by technology.
The technology partners that allow advertisers to centralise their
buying activities will ensure advertisers do not bid against themselves (by
accessing the same supply across many different header bidding solutions).
Summary
Programmatic
buying is changing; real-time bidding encourages the exchange of inventory for the
market price. Header bidding, for now,
is a supply side area of focus and won’t affect the advertiser’s ability to
access inventory directly or via programmatic routes. Adoption of header bidding solutions has been
high amongst the publisher community but, in reality, it will take some time
for this to change the dynamics of how media is traded.
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