The Programmatic Glossary
A practical glossary designed to help marketers, advertisers and ad-tech professionals understand the terminology that powers programmatic advertising
Monetisation
Header bidding
A programmatic technique that lets publishers offer their ad inventory to multiple buyers simultaneously, before their primary ad server makes any decisions. It creates a unified auction where all demand partners compete at once, rather than being offered inventory one at a time in a sequence.
HOW IT WORKS
A piece of JavaScript code (a Prebid wrapper) loads in the page header before the content. When the page starts loading, it simultaneously asks multiple DSPs (Demand-Side Platforms) and exchanges to bid. All bids are collected, the highest one is passed to the ad server as the winner and the ad is served. This dramatically increases competition compared to the old waterfall method.
EXAMPLE
Without header bidding, a publisher's ad server asks one partner first and if they pass, tries the next network. With header bidding, multiple partners all bid at the same time. The highest bid wins regardless of which partner submitted it, generating significantly higher CPMs (Cost Per Mille).
RELATED TERMS
Prebid | Prebid Adapter | Waterfall Auction | SSP (Supply-Side Platform) | DSP (Demand-Side Platform)
★ LIMELIGHT INSIGHT: integrates as a demand partner via Prebid adapters, enabling publisher partners to access Limelight demand through header bidding alongside all other demand sources.
