How Server-to-Server Header Bidding Builds a Better Marketplace

In the age of ad fraud and fake news, trust and transparency in the marketplace are more important than ever. Nigel Gilbert, VP Strategic Development EMEA, AppNexus (pictured below) argues for moving header bidding server-side, as it helps building trustful relationships between buyers and sellers.

The News Media Association (NMA) recently called on Google to take action to combat the spread of fake news and the “chronic lack of transparency” in digital advertising. The move by the NMA reflects the growing concerns amongst independent publishers looking for better monetisation methods to compete with Google’s dominating DoubleClick for Publishers (DFP) business.

This has led us to develop solutions to level the playing field and reintroduce transparency and equality to the market. The emergence of server-to-server header bidding is a critical solution for addressing the key issues facing today’s digital marketplace.

There is a clear, pressing need for a better digital advertising marketplace built on trust and transparency. First, the industry needs to reduce friction in order to make the transaction process easier and smoother for participants, for example, allowing buyers to transact only on viewable impressions. Secondly, we must build more meaningful connections between buyers and sellers, leading to a fairer auction process and more clarity around pricing. This not only ensures publishers are able to maximise their revenue, but also gives advertisers confidence that they are getting the best possible return on their spend. Lastly, the industry needs to put the customer first by focusing on improving the user experience and decreasing latency; which will, in turn, diminish the use of ad blockers and improve trust in the marketplace.

Moving header bidding server-side is a key element in tackling these problems and, ultimately, creating a better, more vibrant marketplace. It can also decrease latency, a major user experience problem that can arise when a publisher has too many demand partners in their header-bidding solution. Now, instead of having browsers do most of the work, servers like AppNexus’ will do the auctioning and decisioning for the publisher. In addition, server-to-server header bidding allows unbiased and easy access to multiple partners. No longer locked into walled gardens, or even a single ad tech vendor, this technology removes any critical dependence on DFP in the industry.

This is not to suggest that there are no potential drawbacks when it comes to server-to-server technology, like difficulties with cookie matching and lower levels of insight than traditional header bidding, which can lead to decreased transparency into which demand partner an ad comes from and why it was selected.

Overcoming these challenges entails adopting a 'hybrid' model, where server-to-server is used in conjunction with a traditional header bidding wrapper to enable publishers to customise their settings. In this model, demand partners can either be on the webpage (a traditional PreBid approach), or integrated through a server-to-server connection. This approach means publishers have the flexibility to maximise cookies, matching with their header partners and increasing bid density through their server partners, while managing latency and optimising revenue. The server-to-server solution gives publishers the control and customisation options necessary to strike the right balance for themselves.

As the technology evolves, it is important to have a community-supported solution that grows with market needs to help instill greater trust and transparency in the marketplace. Trust between different SSP partners is a crucial aspect of making sure that server-to-server works effectively, along with the participation of multiple demand partners. Prebid.js is the cornerstone of this transparency, an open solution that allows publishers and advertisers to see the auction logic. Since server-to-server by nature does not offer this same openness, it is crucial that the partners publishers choose to work with are aligned in their interests and do not compete with them for revenue.

We’ll be watching closely to see where server-to-server goes and how this solution helps us work towards creating a more fair and open marketplace for everyone, built on trust. It wouldn’t be a surprise to see almost every major ad tech company commit to mutual support for header bidding solutions moving forward. This technology represents a crucial step in the right direction in delivering a digital advertising market, where publishers control their own content and have options beyond Google’s technology.