For publishers, maximizing ad inventory is a key profit driver. But, with the rise of programmatic advertising, publishers must find new ways to automate inventory availability to complement the dynamic requests from serving programmatic ads.
Header bidding, sometimes called advanced bidding or pre-bidding, is a product of that rising use of programmatic advertising.
Header bidding is an ad auction strategy publishers use to increase the usage of ad inventory on their pages. Publishers use header bidding to alert multiple ad exchanges that an impression on their site is available to be filled with an ad. The ad exchanges are alerted so that they can bid for the same impression at the same instant.
Thus, header bidding is a way for advertisers to adjust to changing conditions for ad inventory availability.
Header bidding also offers publishers means to understand what kinds of dynamically placed ads audiences are seeing and learn if those ads are relevant to their content topics. This relevancy can impact readers' likelihood to click an ad.
Programmatic ads are increasingly a standard part of marketing plans. Header bidding is simply another mechanism for advertisers gain a better opportunity to reach their desired audiences.