Monetizing your App is easy as pie and we’re here to prove it. In-App Advertising is a pretty cool option that is generating quite some buzz among Publishers. The way to do this is through programmatic advertising methods. It might sound complicated as heck put that way, but it doesn’t have to be like that (especially when there are AdTech Partners like us at Refinery89 to have your back wink, wink).
Read it for yourself! In this article we are going to be comparing two technologies to sell ad space in your App for you to choose your best fighter. Let’s dig into the differences between Header Bidding and Ad Mediation!
What is Header Bidding?
Header bidding is a fan favorite auction system used in programmatic advertising to sell a Publishers’ ad inventory. It consists of a real-time bidding process (RTB) where various ad networks/ad exchanges compete simultaneously for the ad space available. The winning advertiser who made the highest bid gets their ad displayed on the Publisher’s website or app.
How does Header Bidding work in-App Advertising?
The magic starts within a split second after you log into an App. When you enter the app, the Publisher’s ad server makes a request to an SSP. Once the ad request is done, ad networks bid at the same time for the ad space. The network that makes the highest bid is declared the ultimate champion and gets the ad displayed on the Publisher’s website or app.
What is Ad Mediation?
Ad Mediation is a flexible solution to sell ad inventory that gives Publishers more control over who they sell their ad space to. It helps manage multiple ad networks through a single ad mediation platform, a tool that helps app developers manage different ad networks in just one place. Same as with header bidding, the available inventory is put through an auction, but in this case the Ad Networks get prioritized based on past performance data and they get to participate one by one in the bidding process instead of simultaneously.
How does ad mediation work in-App Advertising?
When a user opens an app, the Ad Mediation platform sends a request to the ad ad networks. The competing networks get ranked based on performance (best eCPM, best fill rate, relevance, etc.) and the first one in line is the one that gets the chance to compete for the ad space first. If it doesn’t meet the request, it passes on the next one and so on until the ad request is fulfilled, following the waterfall model.
What’s the difference between Header Bidding and Ad Mediation?
Revenue
Selling ads through header bidding leads to a better yield since the ad networks are competing at the same time and the one who offers the highest CPM wins the auction. Mediation, on the other hand, grants the ad space to the first ad network in the sequential line that meets the floor price. This might not be ideal because you might miss out on the highest bid.
Timing
Header bidding consists of a real-time bidding process where the ad networks compete at the same time for the ad space, while in mediation the auction is done sequentially. With Header Bidding ads load faster, increasing viewability. Also, advanced header bidding solutions, such as server-side bidding or in-app SDK-based solutions, reduce latency when compared to the old waterfall model, enhancing user experience and overall performance.
Request fulfillment
If you’ve been paying attention, you’ll notice that Header Bidding can generate better fill rates since it allows various demand sources to compete simultaneously. Mediation only lets Ad Networks participate in the bidding process one by one following a sequential waterfall model, which can cause higher latency.
Implementation
Ad Mediations requires a single software development kit (SDK) to manage multiple ad networks. Header bidding needs a more sophisticated setup because you need to connect to multiple demand sources while managing aspects like real-time bidding efficiency, ad servers, and tackling any problems that might occur like latency or privacy issues.
But who says that this must be the case for you? Counting on a trusty AdTech Partner can save you from all these processes. You can even use our technology if you want! We’ll handle all the crazy stuff for you so you can focus on more important things!
Choose the best solution to maximize your ad revenue
In recent years, header bidding has become the go-to option for Publishers to maximize revenue. It delivers the best value for ad inventory through real-time bidding. The increased competition allows for higher CPM and therefore, more revenue.
Header bidding can be tricky to implement on your own (especially in-app), but that shouldn’t stop you from driving towards that high ad revenue! That’s what we are here for!
Need a Hand?
At Refinery89 we handle it like a pro for you. By connecting to our solutions, you’ll get access to our Header Bidding system! It that grants you access to 25+ premium demand sources with the best CPM. Prebid, Amazon’s TAM, and Google’s Open Bidding.
Feeling like giving it a try? It’s completely FREE and we’ll be with you every step of the way to assist the set up! Write to us to get started!
