Understanding the value of every ad impression is becoming increasingly crucial to serve the right kind of display and video ads on publisher websites. As the competition continues to rise and more ad networks foray into the online advertising space, the need for a open market becomes extremely crucial. Header bidding was adopted to overcome the undue advantage of DFP’s waterfall model, and it has created a fair auction mechanism which helps publishers to maximize their ad revenue. Since mobile is a space that is going to growing massively in the years to come, in-app header bidding is considered to be an emerging market for any ad tech company. In this article, we are going to discuss some of the best in-app header bidding ad networks of 2018 which publishers and app developers can try out to maximize their ad inventory.
Header Bidding CPM Rates
The CPM rates for header bidding implementation is close to 30-40% higher than the regular display rates. This can further increase with the right price optimization and inclusion of additional SSPs. However, what we have noticed it is, it depends on a number of other factors like IAS score, SSPs acceptance, ad locations etc that can actually define the overall CPM rates on publisher websites.
Why Header Bidding Increases your Overall CPM?
Header bidding is able to increase your overall CPM mainly because of an unified auction process where every exchange and network is given an opportunity to bid on your ad impression. This essentially increase the overall bid pressure as there are more number of SSPs bidding on your impression and the highest bid is chosen among all the SSPs. Over the rates per impression is more, and thus you can see an increase in the overall CPM with header bidding implementation.
Header bidding CPM Rates for Tier One Traffic
Header bidding CPm rates are typically highest for tier one traffic. Although the CPMs depends on the niche of the website, the audience quality and a number of other factors, publishers can expect CPMs to be anywhere around 80 cents to $5 for tier one traffic when header bidding technology is implemented. On extreme cases the rates will go higher than $5. Generally, the average rates remain around USD 2 to USD 3.
Header Bidding CPM Rate for Tier Two Traffic
The benefits of header bidding gradually decrease when the advertiser demand decreases which is generally the case for tier two traffic. Only Google ADX, Adwords, and few others exchanges are prominent in tier 2 traffic and thus the overall CPM rates with header bidding doesn’t see the marked increase.
Header Bidding CPM Rates for Tier Three Traffic
The overall advertiser demand is minimum for tier 3 traffic and if you’ve a significant volume of tier 3 traffic then header bidding implementation wouldn’t help you with substantial revenue uplift. It is better to go with Google AdSense and Google Ad Exchange instead of header bidding implementation.
Despite the battle of words, header bidding is going to stay for sometime as more ad tech partners (publishers, ad agencies) are shifting their tech to enable header bidding implementations. The publishers have seen substantial increase in their overall ad revenue after the implementation of this technology and it is a matter of time as more publishers would gradually adapt to header bidding in the years to come.Hope this article was insightful in helping you decide if you should go with a header bidding adtech partner or not. Do let us know your views and feedback.