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What is EBDA and why should it be combined to Header Bidding?

The Exchange Bidding Dynamic Allocation is a Google product originally launched to counter the rise of header bidding. Publishers are often faced with a false dilemma: choosing between EBDA or header bidding. This short read covers why its not necessary to choose between one or the other but rather combine them. The two products are technically very different.

EBDA vs. Header Bidding - what are pros and cons?

EBDA is a solution in which several SSPs and exchanges are competing in a unified auction against Google Ad Exchange (the auction process goes through DFP) and can thus be considered an enhanced Google Ad Exchange.

The pros?

The auctions happen in DFP, thereby, no additional script needs to be integrated onto the website. Lack of a script requirement is helpful in preventing further latency.

The cons?

It lacks transparency (Google has not revealed the logic behind its enhanced dynamic allocation) and to this day, not many SSPs are connected to EBDA. The publisher can never truly know why a specific advertiser has won an auction. For publishers, this presents an obvious roadblock to pursuing deep analysis. In reality, Google is regaining control over the bids as an exchange player itself at the possible expense of the publishers. The monetization is not optimal.

A header bidding setup works differently. The ad impression is valued before it goes to DFP through an auction process executed from the user’s browser (client-side) or an external server (server-side). This creates external competition on Ad Exchange which results in significantly increased bid pressure.

The pros?

The publisher has better control over the bidding process since the setup is much more transparent and many more SSPs can be connected.

The cons?

A slight impact on the latency is inevitable, however, many options exist to make this not noticeable with the human eye (asynchronous integration for example).

An implementation of both products is the best setup a publisher can have to optimally monetize their ad inventory. It will allow them to maximize their demand without drastically increasing the latency. Also, it will further allow for publisher control all the way through the bidding process.

In working with Yieldlove, publishers can benefit from a full stack header bidding solution that has been combined to EBDA. This gives publishers the guarantee to sell every single impression at the highest possible price.

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