Header bidding is an increasingly popular way to maximize revenue from digital advertising, as it allows publishers to determine the true value of their inventory and offer it to a larger selection of buyers. Despite its popularity, many publishers are still uncertain which approach works best for them, whether it’s client-side or server-side header bidding.

In this article, we’ll focus on the two main types of header bidding and highlight the advantages and drawbacks, so you can make an informed decision about choosing the right prebid server for you. 

Server-Side Header Bidding

Server-to-server header bidding essentially involves the ad auction taking place on an external server. This process will not only expedite page load speeds but also afford you a limitless amount of possibilities for connecting with multiple exchanges and networks like SSPs.

The client-side header bidding system enabled publishers to attain more advertising profits by connecting with a larger pool of demand partners. Though it provided an advantage, the technology couldn’t go without its downsides; the real-time auction that permitted SSPs, ad networks and exchanges to contend ran inside the user’s browser which led to an increase in processing power required from their browsers. Consequently, the page load speed decreased drastically. Because of this, the server-side header bidding was created.

S2S Benefits

Server-to-server header bidding offers a multitude of advantages to both publishers and advertisers. By accelerating and streamlining ad decision-making, the server doesn’t have to wait for each DSP’s response before assessing the next bid. This ultimately leads to increased revenue for publishers and enabled more effective campaigns for advertisers.

Server-to-server header bidding offers many advantages, from higher transparency to more efficient inventory control and improved ad-fill rates. Furthermore, this type of program is exceptionally scalable, making it a great choice for businesses that need room to grow. On top of all these benefits, server-to-server header bidding can also provide a more robust user experience than other options available on the market today. Of course, you should be aware that setup and management may require slightly greater technical proficiency in comparison with alternative forms of header bidding.

S2S Drawbacks

Cookie Matching

As soon as the real-time auction is launched within a user’s browser, advertisers are searching for cookies that can identify them. This allows them to calibrate their advertisements to specific user profiles and create more value, thereby leading to higher ad prices. But with server-side header bidding, much of this data cannot be sent out to the ad servers so advertisers get lower match rates and consequently offer less money on ads displayed by publishers.

Transparency

When the bidding competition is hosted externally, publishers can have less insight into what occurs during the auction. Yet with client-side header bidding, they are able to view which buyers are participating in the process and who won. However, further complexity arises when a bidder provides both server-side “black box” offers and their own demand; potentially creating a conflict of interest as they will be competing for themselves while simultaneously deciding who wins this heated contest.

Technical Complexity

Executing and administrating an S2S header bidding setup is more intricate than with other varieties of header bidding, like client-side. This can be especially overwhelming for publishers who are more diminutive in size and do not have the personnel or know-how to effectively manage it.

Difference Between Server-Side and Client-Side Header Bidding

Client-side header bidding runs the ad auction within a user’s browser, whereas server-side header bidding handles it remotely. This means less strain is put on your device and pages can be loaded faster—an especially beneficial aspect for those with slower internet or outdated hardware. Server-side header bidding guarantees users have a seamless journey through your website so you can guarantee maximum satisfaction from every visit.

So, Which One Is Better?

By combining client-side and server-side header bidding, publishers can maximize their ad revenue. The top SSPs and Exchanges should be run on the more efficient client side while a long list of less profitable demand sources competes via the server side to increase potential profits. This hybrid setup ensures that you are tapping into all possible advertising options in order to optimize your earnings.

Hybrid header bidding integrates publishers with a larger quantity of advertising demand sources and optimizes page load times, while decreasing the amount of processing power needed by users’ browsers, making it the perfect solution.

Bottom Line

Client-side and server-side header bidding each have its own set of pros and cons that must be considered. Ultimately, which technology is better suited for your needs will come down to a careful evaluation of your specific requirements, but you can never go wrong by combining them both for maximum success.

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