Due to the newly appeared mobile header bidding solutions, the landscape of mobile monetization has finally started to thrive. With year-to-year monetized impressions grown by 200% in 2017, mobile bidding ad tech is promised a great future, taken that 8 out of 10 mobile web ads in 2019 will be bought programmatically.
A couple of years before, the header bidding on mobile looked rather like a far-fetched dream of a publisher or an app developer who wanted to reap the rewards of advanced bidding technology that already brought enhanced revenue streams to the desktop unified auction participants.
Before first mobile app header bidding solutions popped up on the scene, bidding in real time on mobile ad market only worked through direct or waterfall schemes, which costed mobile app publishers up to 50% inventory loss and a great deal of remnant inventory.
Header bidding on mobile: what is it and how it works?
Offering advertising opportunities to multiple demand partners at the same time, mobile header bidding code provides equal chances for every participant to take part in the unified auction, including demand-side platforms, ad networks, and ad exchanges.
For the publisher such mobile bidding or desktop technology is also an opportunity to assess the inventory objectively, based on current demand and subsequently increase the yield by 25%-30% compared to the waterfall approach.
Header bidding technology provides unpreceded benefits for desktop, mobile publishers and advertisers alike, as they’re interested in higher quality inventory that otherwise is quickly sold out through the direct deals or the first “rounds” of waterfall bidding process.
Mobile header bidding: perspectives and solutions
Just in 2 years header bidding made a giant leap from the state of being unknown towards the title of “highest yielding ad tech solutions”, adopted by 70% of publishers worldwide.
Our data illustrate the current state of the header bidding technology adoption on mobile and desktop for May, 2018.
Our quarterly header bidding also index indicates - around 27% of impressions that were monetized in 2017 came from mobile header bidding.
Header bidding mobile monetization strategy is a way out of problem related to low incomes mobile publishers face these days.
Whereas in the desktop environment the string of header bidding code is integrated directly to the browser, the mobile header bidding is implemented with a help of software development kit, (SDK), client or server side.
The client-side wrapper code allows to connect for several adapters, while server-side back-end integrations allow to ping several ad exchanges.
Mobile header bidding solutions: real-time, close at hand
To this time software development kit remains to be the most popular mobile web bidding decision, also known as mediation platform for the mobile integration. Over 75% of publishers use 5 different app header bidding partners.
Such approach helps to achieve the transparency and unification for every bidder the publisher is connected to. For mobile publishers and developers, such mobile solution can be regarded not only as a platform but as a long-term partnership where the publisher establishes good relationships, ensuring reduced latency and increasing the yield.
However, each additional SDK code string fitted in the mobile will also mean slowing down the speed for user experience, that’s why for the big publishers it is easier to transfer app header bidding server side.
Setting up mobile header bidding code on device with SDK, mobile app publishers can quickly monetize the app and increase the yield, dealing with more demand partners and obtaining the bids coming from leading demand sources.
Worth to mention, SmartyAds has own header bidding wrapper solution for desktop, that helps advertisers to connect the new partners, and access analytics. Implementing Smartyads header bidding the publishers get the full picture on bid dynamics, latency speed, and real value of their inventory.
Mobile header bidding provides a publisher with a number of obvious advantages, including:
Transparency by default - As algorithms are clear and explained and auctions fully audited, the publishers can see each bid for an impression coming from the demand source and control them.
Waterfall flattening - Bidding in real time, every partner provides own evaluation up front so there’s no need to manage the process in which partners gain access to the inventory.
Better yield - Header bidding for mobile calls all participants of the auction so the publishers can earn more, save fees on passbacks, and earn more by choosing the highest suggested rate.
Looking far into future
Header bidding mobile solutions are beneficial to everyone, as they grow and evolve, they also learn how to maximize the yield of the mobile publishers. In-app header bidding solutions gradually grow and evolve with a great perspective to become a unifying decision for demand platforms consolidation available for in-app ecosystem.
Furthermore, in the nearest future, in-app header bidding that combines the benefits of the server side and client side technologies will help publishers consolidate the demand partners, making the unified header bidding auction even more profitable and tech sustainable.
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