The Adhese Gateway: an innovative alternative to header bidding

The Adhese Gateway is a unique, revolutionary way of optimising revenue from online advertisements. Currently, publishers have virtually no other option than to sell each advertising space themselves (direct sales) or to offer the space to third parties (SSPs). Direct real-time sale in competition with the market is not possible. This means a potential loss of revenue since not every space will necessarily achieve the maximum market value per visitor, context and/or point in time.

Getting the most out of every ad position

For each advertising space, publishers determine which type of sale (direct versus via third parties) takes precedence. This results in a cascade structure where, for example, direct sales or in-house campaigns always take priority. The space is offered to the next priority level (for example real-time bidding) only if the first priority level has no advertisement to offer.

There is no competition between the different priority levels, resulting in potentially higher revenue per advertisement being missed. It is not inconceivable that the amount achieved via direct sale is lower than the amount that could be earned via real-time bidding. The Adhese Gateway allows these two revenue streams to be weighed up against one other so that the most economical offer can always be selected for each advertising space.

With the cascade structure, an advertisement must first be sought via direct sales for any given space. Even at the second, third or fourth page view, relevant advertisements via direct sale are considered first. SSPs or other third parties are engaged only when there are no more direct sale offers. The disadvantage of this is clear: only a limited number of the full potential of impressions is offered to the market. Offering each impression in a real-time bidding environment and allowing direct sales to compete with the market enables higher revenue per impression.

Optimise yielding, bandwith usage and latency

The Adhese Gateway allows users to determine per advertising space and/or campaign whether to place it in competition with SSPs. The original price from direct sales is sent to the SSP as a proxy bid. This triggers higher bids, since a value for the impression is already given. Furthermore, a dynamic (for example depending on the point in time or known user data) bottom price can be set, when a proxy bid from direct sales is not available.

The cascade structure brings potential latency problems: all requests to SSPs and any redirects happen on the client side (via the user’s browser). This is very disruptive on a desktop, tablet or smartphone. It results in pages loading slowly (or sometimes not at all), page elements jumping about and changes in the layout. These are arguments frequently heard in favour of resorting to ad blockers.

Adhese Gateway ensures that all communications with SSPs takes place server side. This saves time compared with client-side applications. The gateway applies a strict time-out to all communication with SSPs: there is now no waiting time when loading advertisements from third parties. An added advantage of the server-side solution is that the bandwidth and data usage on the part of the (mobile) user does not come under pressure from requests constantly being sent.

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