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So when a user plays a video, the player sends an ad request. Then, several adexchanges , ad networks, and SSPs place their bids for that impression simultaneously. The demand source that offers the highest amount wins the auction and serves a video ad. Put simply, header bidding is a type of real-time bidding.
The concept of header bidding appeared in 2014, and a few years later, supply-path optimization became a part of the technology, solving the challenge of bid duplication. For publishers, these are improved adfillrates, higher revenue, and better user experience. The same applies to the number of intermediaries.
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