Last Wednesday, Facebook announced that their ad network would be adopting header bidding to ensure publishers get the best deals for their programmatic ad sales.
As Marketing Land explains, this will level the playing field and enable Facebook to challenge ad networks run by Google and other publishers.
Although Facebook is reported to have started testing header bidding back in August 2016, it’s only now that the platform is officially adopting it for their Audience Network.
According to Facebook, publishers that have tested header bidding through the Audience Network have seen their revenue increase by 10 to 30%. However, it’s important to keep in mind that Facebook’s header bidding is currently only available for mobile websites.
So, how does header bidding work?
Basically, when a programmatic ad slot goes up for sale, publishers are able to check the prices of the slots from different ad networks one by one. If the first ad network matches their desired price, then a deal will be made without competing networks being given the chance to offer more money.
This, as Marketing Land explains, often causes Google’s ad network to win out early in the bidding war.
However, header bidding doesn’t put ad slots from different ad networks up for sale in this way. Instead, of this being done in order, the publisher can solicit potential prices (also referred to as ‘bids’) from these networks at the same time.
Therefore, by adopting header bidding, Facebook will enable publishers to get the best deal before closing the auction. It will also give them more control over the websites their ads are appearing on in more detail.
For more information on how header bidding will work for Facebook, check out Marketing Land’s article.
The TJM take: As we’ve already touched upon, a main advantage of Facebook adopting header bidding is that advertisers will be able to get a better deal on ad slots, as well as have more control over the websites they appear on (which should mean more relevant clicks and traffic).
Advantages aren’t just present for the advertiser, however; by adopting header bidding, Facebook will be able to become a bigger player in media buying, which makes it more competitive. The result? Publishers being able to make more from it, as well as a 20% bigger spend for advertisers.
All in all, we’re interested to see how Facebook’s ad network fares against Google’s!
*Image source: AdWeek
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