Header Bidding And The Fate Of RTB
Header Bidding And The Fate Of RTB
by AdExchanger
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.
