Since introducing Audience Network in 2014, we’ve helped developers around the world build their businesses by bringing ads from Facebook to their apps. Last January, we began testing with mobile web publishers like Washington Post, Forbes, and Daily Mail.
This test gave us important insights into the business dynamics between technology providers and publishers. With the way ad bidding happens in programmatic advertising, publishers are consistently losing margins to third party middlemen who make the rules and obfuscate the truth. These are well-known issues, and they are being combatted through new technologies like header bidding. Header bidding is a more transparent bidding process where publishers see what every advertiser or technology provider is willing to pay for every impression. The key principles of header bidding are:
All demand sources get the same information at the same time
The ad space goes to the source willing to pay the most
There is no arbitrage, no “averaged” waterfall and no secret auction manipulations by a demand source
A diversification and stability of revenue for publishers
We believe that header bidding and the principles behind it are better for publishers, advertisers, and people, which is why starting today we are opening up Audience Network to qualified mobile web publishers who work with a select group of technology partners: Amazon Publisher Services, AppNexus, Index Exchange, Media.net, Sonobi and Sortable. Moving forward, mobile web publishers who use header bidding will be able to join Audience Network through approved partners or through open-source header bidding solutions like PreBid and PubFood. In our tests, publishers who integrated Audience Network header bidding reported increases in revenue of 10%-30%.
“Introducing demand from Facebook’s Audience Network has made a positive impact to our monetization efforts across our websites and apps. We are now able to access the large pool of advertisers already running ads across Facebook. By using Audience Network via header bidding we achieve yields on qualified impressions that are 2X-3X higher than we receive from traditional exchange based demand.” – Matt Wheatland, US Director of Programmatic, Daily Mail
Together with our partners and publishers, we are exploring ways to make programmatic ad auctions even better. Server-to-server integrations, where the bidding happens outside of a browser, has been shown to improve latency and create a better user experience.
“Amazon Publisher Services helps publishers maximize their monetization and user experience. We do this through a server-to-server, cloud-based integration and a transparent auction in which everyone competes on equal footing. Facebook and Amazon share the core tenet of leading with transparency to serve publishers, and we welcome Facebook Audience Network’s demand to our Transparent Ad Marketplace” – Ken Leeder, GM, Amazon Publisher ServicesRead More at Facebook Blog