According to eMarketer, the growth of digital video advertising is expected to increase by double-digit percentages annually between now and 2021, reaching an estimated $22B by 2021. Because of this, it is more important than ever to have a clear understanding on why video header bidding is becoming the most effective means of transacting on video inventory. More importantly, it is vital to have best practices implemented to ensure you are able to maximize on your ability to scale your inventory appropriately.
Why Video Header Bidding?
First, I think it would be beneficial to understand why header bidding should be used with video. Video header bidding increases competition by selling inventory to multiple partners at once with the move from waterfall. Real world experience has show video header bidding decreases latency and improves yield. Further, it has also been seen to improve eCPMs.
At PubMatic, when reviewing Q2 2019 internal video data comparing waterfall setups to header bidding integrations, we observed a 20 percent eCPM lift with header bidding over a waterfall setup. What this means for the publisher is higher fill-rates, and ultimately, higher revenue.
Given the benefits of video header bidding, there are a few solutions in the space that publishers can opt into, including PubMatic’s OpenWrap solution, Prebid, Google’s Exchange Bidding, or Amazon’s TAM solution. At PubMatic we strongly encourage multiple integrations, whether it be through us or other channels.
Why Have Multiple Integrations?
Multiple integrations benefit the publisher primarily because they allow for more strategy with available inventory. For example, while you can setup Always-On PMP deals with some server-side integrations, you may not find the flexibility there to setup guaranteed deals like you could with a client-side integration. By utilizing both, you can take advantage of the resources to maximize eCPMs on one integration while focusing on revenue with another.
Publishers can also impact auction dynamics by utilizing server-side connections, gaining a run of network approach, while also taking advantage of client-side header bidding for more nuanced targeting. For example, Publisher X has a Prebid and EB connection where they have banner and video inventory. By having Prebid’s auction in place winning at a certain price, EB can now effectively utilize this eCPM as a guide for its dynamic flooring to win, as well. Over time, each auction would essentially have competitive eCPMs, but by having multiple header bidding solutions it will create opportunities to value the inventory at the price the inventory it deserves.
Video Header Bidding Best Practices
When jumping into video header bidding, it is important to keep a few best practices in mind to best monetize your inventory.
For client-side header bidding, understanding a publisher’s video inventory and the parameters they support is crucial to the success of video header bidding. For instance, it is important to correctly indicate if it is VPAID inventory, or MIME-types are supported outside of the conventional mp4, or if it is skippable video. Without correctly setting these parameters this within the publisher’s Prebid configuration, a lot of monetization opportunities are left on the table.
Publishers consult with their supply partners on their supported types of video inventory so that the supply partner can effectively make sure that all necessary parameters are in place to maximize on bids. Remember, buyers want to know what kind of inventory they are buying before they bid and they know what they are looking for. Having this level of detail and collaboration between the publisher and video partners can make a big difference in the bid rate, win rate and yield.
Next, frequent collaboration between the publisher and the demand partner on how to maximize bids won in the auction will have a direct impact on the publisher’s ability to maximize quarterly revenue. While understanding bid losses is important, there are other variables, such as seasonality, that should not be ignored. There are buyers that only look for specific inventory during certain timeframes. Thus, handling video inventory with a hands-on approach will ensure that supply partners are optimizing bids around buyer seasonality trends. Make sure to maintain open communication, as this means both the supply partner and publisher are aware of any changes throughout the quarter.
Lastly, and most importantly, look for vendors who distinguish themselves from the stack by providing a strong service and added value that is in your best interest. Look for a video header bidding vendor that will keep you informed on how to maximize your return-on-inventory and who sets you up for success. You can identify this type of collaboration with a vendor by how they prove the value of various services such as in-stream versus out-stream, short- versus long-form video, PMPs, and even additional formats, such as CTV.
Video advertising is one of the largest programmatic channels, so it is important that publishers understand how to maximize yield and future-proof their programmatic monetization. PubMatic helps multi-format video publishers capitalize on programmatic demand and brand budgets by improving omni-channel video monetization and user experience through multiple video header bidding solutions, including PubMatic’s OpenWrap solution.