Mobile Header Bidding - How This Auction Works Specifically In-App

Introduction to Programmatic Advertising: Digital Marketing Auctions - Waterfalls, Header Bidding, and all about Programmatic Auctions
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Transcript

Okay, now we're going to talk about this header bidding a mobile specific environment. So reset this again, we have our giant mobile phone. and in this situation, we have a 320 by 50, this room on the top of the app. now in this situation, there is no header, because headers are for web pages, and that environment, totally different environment. So we don't have that header, you don't have that opportunity to do header bidding. Also, mobile phones are like small computers, they have processors, I have memory.

And just like any other computer, some are better and more powerful than others. Now, for the most part, even the newest mobile phone is not as powerful as your desktop computer or your laptop. Also, the mobile environment is a lot different. You're not usually you're not hardwired into an internet connection. You're on Wi Fi or you're on 3g You're LTE, which means you can be on a weak signal via WiFi signal or you're in bad cell area, you also move very quickly, people tend to move in and out of apps. And that web page is a lot faster a mobile device than they do on a desktop device.

So this idea of having this auction on your device becomes problematic in the mobile world, an app doesn't work at all. And on mobile web, it can work because you have a browser and you have a header like you would on any other website. But as I just mentioned, your device might not powerful enough, you could be on a bad cell connection. And that whole auction process might not happen and might not complete, it might not work correctly, in which case you would essentially default back to your traditional waterfall setting. So what companies are doing is taking that header bidding process and having it all happen. on the server side, which means it happens in the cloud or off of the client side client being your actual device.

So Google doesn't do header bidding. But there are companies that have a similar solution. somato is a mobile specific one that does have a solution that essentially does the same thing as header bidding, and that it holds a super auction for all of your demand services. So we'll say in this situation somato is the ad server, not the not DFP. So what happens the ad is called and its motto goes to all of your demand sources and says give me your best. And again, you go through the process somato can be bidding in this situation with their exchange, open x can be in here.

They could have interactive in here. And they could have add it in here. so in this situation, we'll say smaller wins. And smarter than sort of the add on a device. Now, it looks very, very similar. But the important thing here is that this auction takes place outside of the app, it takes place on a server somewhere else.

That's called Cloud computing. That it's not on your individual device. It's happening on a processor somewhere else. Now this call can take less than a second usually does, we're talking 500 600 milliseconds. And having that option take place on a server allows for that tech company to control things like latency timeout for internet connections, things that we discussed the view problem, if that was to take place in mobile device, it all handles off site very quickly. And then they just do one ping back to the mobile device.

There are a number of companies that are doing similar solutions. I'll talk a little bit about that. At the end, I talked about the future of advertising. But this server side, or cloud based option is really where things are moving for the mobile specific world. And this idea of header bidding, everybody competing together, instead of your traditional waterfall is growing more and more every day. It's certainly where we are going.

However, it could be that you run this super auction, and nobody returns a bit. Maybe for whatever reason, nobody's willing to bid on that. In that situation, you would default back to your either traditional waterfall, or you could have a house ad, you could have a direct solo campaign. So after this auction takes place, and nothing if no one has failed, no one as interested in buying that, as best you could default back to more of your traditional waterfall. So it really depends on how large your app is how many demand partners you have, what your floors are wizards mutations are a lot of details that can go into it that vary from app to app publisher to publisher. So hope that explains header bidding for both your desktop and your mobile environment.

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