Header bidding has added significant value to the publisher ecosystem, maximizing revenue and creating opportunities to democratize access to the ad server.
A series of fascinating trends in the header bidding context have emerged that, if they continue, will significantly change the dynamic of real-time bidding (RTB).
Real-time bidding is based on the proposition that the highest bid wins at the second-highest price. While the justification for this principle may or may not be sound, agents can profit if they can correctly value an impression with low demand – or at least with a relatively high differential between the first and second auction prices, reducing the bid price significantly. This dynamic only works if there is a single auction for the impression. That means all bids are compared at the same time, quickly determining the highest and second-highest bids.