Point of this article..
- Prebid is an open-source framework that serves as the foundation for implementing Header Bidding in a practical and efficient way.
- Header Bidding is an ad auction method that allows multiple parties to bid simultaneously for a single ad slot.
- Understanding both is essential so that publishers can optimize revenue from their digital ads.
Many publishers think Prebid and Header Bidding are the same. In reality, understanding their differences can be the key to maximizing your ad revenue!.
In the ever-evolving world of digital advertising, publishers are faced with various technologies and strategies to maximize their ad revenue. Two commonly heard terms are Prebid and Header Bidding. While they may sound similar, each has its own role and function within the programmatic advertising ecosystem. This article will explore in depth the differences between Prebid and Header Bidding, and how both can be leveraged for a more effective monetization strategy.
What is Prebid?
Prebid is an open-source framework designed to help publishers implement Header Bidding strategies more easily and efficiently. It provides a technical structure and adapters to connect various SSPs (Supply Side Platforms) or ad networks into a fair and transparent auction.
Prebid is divided into several main products:
- Prebid.js: a JavaScript library for client-side Header Bidding implementation.
- Prebid Server: a server-side solution to reduce load on users’ browsers.
- Prebid Mobile: SDK for in-app mobile implementation.
How Prebid Works
When a user visits a publisher’s site, the Prebid.js script is triggered in the page header. This script automatically contacts multiple demand partners (SSPs) to request ad bids. These bids are collected within a set timeout and sent to an ad server like Google Ad Manager. The ad server then selects the best available bid to display the ad to the user.
What is Header Bidding?
Header Bidding is a monetization strategy in which multiple demand partners (SSPs or DSPs) are given the chance to bid on ad inventory simultaneously, even before the call is made to the ad server like Google Ad Manager.
This concept introduces a fair and competitive auction system that improves CPM and transparency.
How Header Bidding Works
When a web page begins to load, the Header Bidding script is executed and invites multiple demand partners to submit bids for the ad slot. All incoming bids are compared, and the highest bid is sent to the ad server to be compared with other networks (such as Google AdX). The ad server ultimately selects the highest-value ad to be shown to the user.
Prebid vs Header Bidding Comparison
| Aspect | Prebid | Header Bidding |
| Definition | Open-source framework for implementing Header Bidding | Monetization strategy based on simultaneous bidding |
| Function | Tool to organize and execute Header Bidding | Method to increase ad revenue |
| Tech Type | Library and server-side systems | Strategic approach in monetization |
| Complexity | Requires technical setup but highly flexible | Can be complex depending on tools used |
| Strengths | Transparency, flexibility, active community | High CPM, transparency, greater control |
| Example Use Cases | Prebid.js, Prebid Server | Amazon TAM, Index Exchange Header Bidding |
| Publisher Control | High – full customization | High – if using tools like Prebid |
| Scalability | Excellent with Prebid Server | Depends on tools and implementation |
Pros and Cons
Prebid
| Pros | Cons |
| Open-source, flexible, complete documentation | Requires technical skills for initial setup |
| Broad SSP integration support | Needs periodic maintenance and updates |
| Supports client-side and server-side | Setup may be time-consuming without expert help |
Header Bidding
| Pros | Cons |
| Boosts revenue through competition | Potential latency if not properly optimized |
| High transparency in monetization | Implementation complexity varies by tool |
| Access to various demand partners | Requires ongoing monitoring |
Which Is Better for Publishers?
Prebid and Header Bidding are not technologies that replace one another; instead, they complement each other. However, if a publisher must prioritize one:
- Those looking for greater control and transparency should start with Prebid, as it provides high technical customization for auction setups.
- Those wanting to immediately boost revenue from multiple demand partners should consider Header Bidding, with Prebid often being the implementation tool.
Optimal solution: Use Prebid as the tool to execute a powerful Header Bidding strategy. ProPS can guide and manage the entire setup for maximum performance.
Conclusion
Although often confused, Prebid and Header Bidding are two different but complementary components. Prebid is a framework or tool that simplifies the implementation of Header Bidding strategies. Meanwhile, Header Bidding is a strategic method that increases publisher revenue through open competition among bidders.
Prebid is ideal as the technical foundation for Header Bidding. With ProPS’s guidance, publishers can easily set up, optimize, and monitor the performance of both technologies.
FAQ
1. Can Prebid be used without Header Bidding?
No. Prebid is a tool used to run Header Bidding strategies. Without Header Bidding, Prebid doesn’t serve a monetization purpose.
2. Can Header Bidding work without Prebid?
Yes. But Prebid is one of the easiest and most flexible ways to implement Header Bidding.
3. What are the benefits of Prebid Server over Prebid.js?
Prebid Server reduces the load on users’ devices and can scale better for high-traffic sites.
4. How does ProPS assist with implementation?
ProPS provides full consulting and implementation services, from header bidding setup, revenue optimization, to performance monitoring.
5. Are Prebid and Header Bidding suitable for all types of publishers?
Yes, whether it’s news sites, niche blogs, or mobile apps. ProPS helps determine the most suitable approach based on your traffic and monetization needs.