In-App Header Bidding: How to make more money with it? [7 Benefits Included]

Introduction

While mobile app revenue is estimated to cross the $270 billion mark by 2025, only 10% of app publishers monetize their app’s traffic.  Imagine global app revenue crossing the trillion-dollar mark once the majority of app publishers harness more programmatic advertising techniques to scale their ad revenue.

In-app header bidding has been the secret sauce of the 10% of app publishers who are killing it in mobile advertising. This article will explore how in-app header bidding works and why you should consider using it to scale your app monetization.

What Is In-App Header Bidding?

In-app header bidding is an advanced programmatic advertising technique that enables mobile app publishers to maximize their ad revenue by facilitating a real-time auction for their ad inventory. This technology, integrated into an app’s Software Development Kit (SDK), allows publishers to simultaneously offer their available ad space to multiple demand sources, including various demand-side platforms (DSPs) and supply-side platforms (SSPs).

To maximize revenue for the publisher, ongoing auctions create competition among bidders for all in-app ad impressions. If you don’t want your valuable app monetization strategy to be hijacked by one or two players who pay top dollar but don’t deliver value back (or if you’re simply looking to diversify your revenue streams), In-App Header Bidding might be right up your alley!

Problems with the In-App Waterfall Model

Publishers traditionally prioritized impressions based on historical performance data from demand sources. The in-app waterfall model allocated ad inventory from source to source until all addressable impressions were filled.

However, this approach makes the process not competitive enough since only one ad network can buy an impression at a time. Unlike real-time bidding, the waterfall technique often results in lower yields for publishers because primary demand partners bid in sequences rather than in real-time.

A first-ranked ad network has the primary call on responding to a request over other ad networks. Consequently, higher-paying advertisers can’t bid more, decreasing revenue uplift opportunities. Furthermore, if an ad falls further down, it doesn’t get called, and potential revenue opportunity is lost.

Related Read: https://www.monetizemore.com/blog/evaluate-adops-setup-header-bidding-vs-waterfall/

In-App Header Bidding vs. Web Header Bidding

In-app header bidding was developed as a transparent and justifiable way of auctioning and buying ad inventory. Compared to the traditional in-app advertising waterfall model, in-app header bidding lets all buyers simultaneously bid on the same ad inventory, with the highest bidder always winning.

This method’s process is almost the same as website header bidding. Website header bidding occurs through header bidding wrappers, which are JavaScript tags responsible for evaluating bids, ad server communication, and ad calls to the demand partner. Ultimately, the highest bidder always wins the real-time auction, with their ad popping up on the publisher’s page.

How Does In-App Header Bidding Work?

So, how does in-app header bidding work? You might be surprised to learn it works very similarly to web header bidding, but there are some key differences that you need to know.

First off, all bids are sent through a server-to-server connection between the publisher’s ad stack and demand partners. This is where you’ll find the big difference between in-app and web header bidding: In-app, this communication takes place directly on your device rather than going through an external network like HTTP or HTTPS.

To avoid confusion with web header bidding, in-app header bidding goes by terms like advanced bidding, parallel bidding, and unified auctions. But how does this translate into actionable results for advertisers? Let’s break down your options:

The substitution is an SDK kit in the app for the embedded code snippet in the site’s header.

What Is The Difference Between Header Bidding And Unified Auctions?

Unified auctions, also known as server-side bidding or programmatic direct, are optimized for mobile app environments because they are designed specifically for mobile app trading. Both header bidding and unified auctions aim to maximize demand for advertising inventory, but their working mechanisms vary.

Unified auctions benefit mobile app environments because they are designed specifically for mobile app trading. In unified auctions, only one bidding session per impression takes place, while header bidding takes bids from multiple auctions.

A unified auction environment allows all demand sources (server-side programmatic demand sources and client-side SDK mobile ad networks) to simultaneously compete for each ad impression. Since unified auctions are transparent, app developers can estimate the pay-per-impression from demand sources.

Benefits of Unified Auctions for Publishers

Here’s a list of benefits you can get from a unified auction:

1. Reduced latency – As we’ve seen earlier, unified auctions reduce latency by allowing demand partners and mobile ad networks to participate in multiple auctions simultaneously. This is especially important for mobile devices where waiting on an ad network is wasted because users don’t like to wait and will leave your site if they have to wait too long.
2. Increased impression shares – With complete access to all demand sources in an auction, publishers can reach maximum inventory shares and significantly increase their revenue potential.
3. Higher average CPMs and higher fill rates—You can set up rules based on bids or other relevant factors (like viewability) that ensure only those ads that meet certain criteria get served while others are blocked out completely!
4. Real-time Metrics: AdOps experts can optimize prices and sell ad inventory by analyzing bid request data in a unified auction environment without relying on historical data.
5. Better Reporting Transparency with access to auction performance data, impressions, earnings per demand partner, bid CPM prices, winning CPM prices, etc.
6. Increased ad revenue with increased demand since all server & client-side demand sources are treated the same.

How to Set up In-App Header Bidding?

There are the steps you must take to build a solid in-app header bidding setup:

1. Set up a DMP (data management platform)
2. Build an existing mobile app already released in the App Store or Google Play store.
3. Setting up the main ad server and Prebid server
4. Integrating Prebid SDK & primary ad server SDK

Click here if you are facing issues setting up in-app header bidding.

Optimizing in-app header bidding timeout settings

Properly configured timeouts can help ensure that the bidding process is efficient, allowing for competitive bids without causing delays that could frustrate users. Here are some strategies for optimizing these settings:

1. Balance Revenue and User Experience

Set a timeout that allows bidders enough time to respond while ensuring that user experience is not compromised. A common range for timeout settings is between 1000 ms and 2500 ms. Values below this may lead to missed bids, whereas excessively long timeouts can slow down page loading times and deter users from engaging with the app.

2. Monitor and Adjust Regularly

Analyze the performance of your timeout settings regularly based on the response times of demand partners. Adjustments should be made to maintain an optimal balance between bid collection and app performance.

3. Consider Network Conditions

Different users may experience varying network speeds. Don’t forget to account for these differences when setting timeouts, potentially implementing longer timeouts for users on slower connections or in regions with less reliable internet.

4. Granular Timeout Settings

Implement different timeout values (1000-2500 ms) for various demand partners or types of bids. This approach can enhance efficiency by accommodating the specific response times of different bidders.

By balancing the need for competitive bidding with user experience considerations, regularly monitoring performance, and utilizing data-driven insights, app publishers can significantly enhance their revenue potential while maintaining a positive user experience.

Benefits of In-App Header Bidding for Publishers

Advertisers are more likely to bid higher when they have access to real-time data, which results in better ad delivery and a better user experience. When you combine that with the fact that more demand partners are bidding on your inventory, you’re going to get the best possible fill rates.

The benefits of In-App header bidding include:

1. Maximized revenue potential due to increased participation of buyers.
2. Improved fill rates due to more exposure to tonnes of demand partners.
3. Highest bids secured due to increased participation of buyers.
4. Reduced latency since auctions run parallel compared to the waterfall method.
5. Better User Experience with faster load times.
6. Improved transparency, which leads to increased CPMs.
7. More scope for remarketing cookie matches to acquire the highest paying CPM rates.
8. To maximize revenue, publishers should focus on in-app and web header bidding. Publishers are no longer limited to one or the other.

Implementing In-App Header Bidding with a Mediation Platform

1. Choose the Right Mediation Partner: Select a mediation platform like MonetizeMore that supports in-app header bidding and seamless SDK integration and has a proven track record of optimizing ad revenue for app publishers.
2. Configure Header Bidding Settings: Set up your header bidding configurations within the dashboard. This includes defining timeout settings, selecting demand partners, and establishing floor prices for ad impressions.
3. Integrate SDKs: Ensure that our SDK is correctly integrated into your app. This integration is a must for facilitating communication between your app and premium demand sources.

Why MonetizeMore is the best In-App Header Bidding Partner for you?

MonetizeMore stands out as an exceptional choice for app publishers looking to implement in-app header bidding solutions. Here are several reasons why:

• Proven Expertise: As a Google Certified Publisher Partner, MonetizeMore has a strong reputation for helping thousands of publishers maximize their ad revenue by over 50-300% and RPMs for 14+ years.
• Advanced Technology: MonetizeMore’s AI seamlessly integrates with your app’s SDK & enhances the in-app header bidding process, ensuring publishers can optimize their ad inventory efficiently and effectively.
• Dedicated Support: The company offers ongoing support from a team of ad optimization specialists who work closely with publishers to continuously monitor performance and implement data-driven optimizations.
• Access to Premium Demand Sources: MonetizeMore connects publishers with a wide range of premium advertisers, increasing competition for ad impressions and driving up CPMs.
• Comprehensive Solutions: They provide a holistic approach to monetization, integrating the best ad formats and strategies to ensure publishers can maximize their revenue across different channels.

Want help in setting up & tweaking your app monetization for long-term app revenue gains? Get in touch with our AdOps professionals today.