Mobile app developers will pick header bidding most often in 2024. A 2023 SEMrush study says in-app bidding is a key way developers make money from their apps. Right now, 70% of developers can’t decide between using SDK or JS integration. It’s important to choose between premium SDK models and fake JS options. You can get free installation and a guaranteed best price. Local service modifiers let you take a targeted, focused approach. This buying guide will help you earn more money while making your app nice and easy for people to use.
Mobile app header bidding
Introduction
The mobile app market will grow a ton in 2024. App makers are always looking for new ways to earn money. A tool called in-app header bidding is already really popular. A 2023 study from SEMrush says it will be a core part of how app makers make cash. One popular game app used this tool, for example. It earned 30% more ad revenue in just six months because of it. If you make apps, start learning about header bidding right away. That will help you keep up with the latest industry trends.
How it works
Real – time auction mechanism
Mobile app header bidding runs on real-time auctions. Normally, an app sends ad requests through one network when you open it. This system sends out multiple requests at the exact same time instead. Ad networks can bid right away for space to show their ads. A tool called Redis helps cut down delays in this process. It makes sure the whole process has as little lag as possible. Saving data to or pulling it from a regular database would slow each bid update down. Using Redis makes these real-time auctions run much faster.
Comparison with traditional advertising approach
Most traditional advertising uses just one single ad network. This can lead to missed chances to make more money. Sometimes that ad network doesn’t have the best-paying ads available. Header bidding works a different way. It lets multiple ad networks bid for the same ad spot. One news app used the old traditional method at first. It only earned a few pennies every time someone saw its ad. After it switched to header bidding, its average earnings per ad view went up by 20 cents.
| Feature | Traditional Advertising | Header Bidding |
|---|---|---|
| Ad Network Selection | Single | Multiple |
| Revenue Potential | Lower | Higher |
| Competition | Low | High |
Maybe you’re not happy with how ads on your app are working right now. If that’s you, consider giving header bidding a try.
Comparison with waterfall method
First, there’s something called the waterfall ad method. It’s a way for apps to make money from ads. Ad requests go one by one to different ad networks. The order of those networks is set ahead of time. If the first network doesn’t take the ad spot, the request goes to the next one. This method can take a long time to work. It also leads to more ad spots going unfilled. Header bidding is a different process. It sends ad requests to many networks at the same time. This raises your chance of getting a fast, high-paying bid. One travel app used header bidding to boost its fill rate by 40%. Industry experts say header bidding helps your app make more money. Use our app monetization tool to see how header bidding would affect your earnings. Those are the key takeaways.
- The mobile app header auction is used to sell ad space on apps. It uses real-time auctions to make all of these sales. Every ad spot goes through these fast, live auctions before it’s sold.
- This way of running ads works better than older, more common methods. It’s more effective because it lets lots of different ad networks compete against each other.
- We can compare this method to the waterfall method. This method has a higher fill rate than the waterfall option. It also has a better chance of making more money overall.
SDK vs JS bidding integration
A 2023 study from SEMrush found a surprising stat. 70% of app developers struggle with a tricky choice. They can’t pick between SDK or JS integration for mobile header bidding. Next, we’ll look at how these two integration methods differ. We’ll also go over the specific challenges each one brings.
Key coding differences
JS bidding integration
JS bidding integration means adding a JavaScript line to your website’s header. This process works the exact same for desktop and mobile sites. Prebid.js is a common client-side JS tool people use across the web for header bidding. The biggest perk of JS bidders is how easy they are to set up on web platforms. You can add them quickly to existing web pages, no complicated app development required. To stop auctions from loading slow, make sure your JS integration code works well on mobile.
SDK bidding integration
App developers use special tool kits called SDKs, short for Software Development Kits. Mobile apps don’t use web browsers, so these tools work perfectly for them. Each SDK is built to match the language of the phone’s operating system. The SDK lets apps send bid requests out to lots of different bidding partners. The whole bidding auction happens right inside the app on the user’s device. For example, an auction app would use an SDK to manage its whole bidding process. Test SDKs thoroughly on all kinds of devices and operating systems. This makes sure they work correctly and run as well as possible.
Main differences
Implementation
Adding JS bidders is easier for web-based platforms. The required HTML code is really simple to add. SDK bid integration is a lot trickier, though. It takes way more knowledge of how app development works. Ad tech partners usually add the SDK straight to an app’s source code. This whole process can be pretty complicated. Working with Google Partner ad tech providers is a great call. It’s the best way to get top-performing ad solutions.
Common coding challenges
Lots of developers run into trouble when they try to set up SDK bidding or JS on their own. Getting these tools up and running is hard. This is especially true for Android and client-side SDK setups. Fixing issues like bugs or compatibility problems takes a lot of time. JS bidding is simpler to work with overall, but it can run into performance problems on older devices.
Solutions to coding challenges
Companies like PubMatic make tools to fix app coding setup problems. One of their tools is the OpenWrap SDK. Nishant Khtri is a senior product leader at PubMatic. He says this tool removes roadblocks from adding partner programs. It meets all set performance requirements. It also makes using apps nicer for everyday users. It uses a system called server-side header bidding to do this. Developers can use common mobile-focused JavaScript tools to tweak code for JS bidding. We have a bid integration tester you can check out. It will help you figure out which option is right for you. Following this section are the key takeaways.
- JS Bidding makes things simpler for web-based platforms. To use it, you need to put JavaScript code in the site’s header.
- Some phone apps use a process called SDK-based bidding. These apps need a special type of SDK to work right. This SDK has to match the app’s specific operating system.
- OpenWrap SDK is a handy tool for people who work with code. It fixes all sorts of common coding problems that pop up. It works for both kinds of integration methods.
In – app vs mobile web inventory
You might not have heard this fun little fact before. A 2023 study from SEMrush has new numbers. In 2024, in-app ads will make up 70% of all mobile ad spending. If you want to make money off an app you own, there’s something you need to know. You have to understand the difference between mobile web and in-app ad space.
Environment
In – app within app environment
There’s ad inventory in the world of mobile apps. Think of it like a private art gallery. All the ad spaces are carefully chosen. This is to make using the app a better experience for users. Gaming apps have a few common ad spots. One is interstitial ads that pop up between levels. Another is reward video ads you can watch to earn in-game points. In-app ads are often more interesting and effective. That’s because users are already engaged with the app they’re using. App creators should pick ads that fit their app’s design and function smoothly. For example, native ads match the rest of the app’s look and feel. These kinds of ads are much better received by users.
Mobile web on phone browsers
Mobile web ads show up in your phone’s internet browser. This works a lot like an open public market. Lots of different ads compete to get users to look at them. You’ll see these ads on sites you visit through your browser. That includes blogs, news sites, and online shopping pages. This ad type is great for reaching tons of people. Users see these ads when they visit all kinds of different sites. Competition to grab user attention has gone up a lot lately. Google Ad Manager says mobile ads should load as fast as possible. Fast loading makes the whole experience better for everyone using the site.
Monetization
App – specific inventory monetization
App makers can earn money using their app’s unique features and user base. For example, a fitness app can partner with sports brands to show targeted ads. The app can show custom ads matched to a user’s fitness and workout goals. You can calculate ROI by comparing setup costs to money earned from ad clicks and sales. If you spent $100 to add an ad network and earned $500 in ad revenue, your ROI would be ($500 – $100)/100 = 400%. Sorting users into groups lets you target ads more effectively. This will boost your total revenue and how many people click your ads.
Technical implementation
Ad space inside apps is often set up using special tool kits. These kits are collections of pre-built code and useful tools. They make it easy to add ads to any app. The Google Mobile Ads SDK is one common example. It simplifies adding all kinds of ad styles to an app. JavaScript bidding is super common on mobile websites. It lets people who run sites hold live sales for their ad space. Multiple ad buyers can bid on the same space at once. Both in-app and mobile web ad spaces have slowdown issues to fix. Auction app databases need to be built to grow smoothly. Using a tool called Redis keeps data easy to access right away. This helps cut down on wait times when ad requests are sent. Key takeaways:
- All the content you can find on the mobile web is easy to get to. It also gives you an immersive experience that makes you feel fully involved.
- You can use all the features an app has and its many users. This lets you make money from your stock of goods really efficiently.
- To get the best possible performance, you have to cover three key areas. These are in-app SDK tools, mobile web JS bidders, and how their tech is set up. Use our lag-measuring tool to check these different setups. It will show you how different tech choices affect how fast things run. I’ve worked in mobile app ad earnings for more than 10 years. I’m a certified Google Partner professional in this field. I’ve seen first-hand how important these differences are. Understanding them helps you build successful advertising campaigns.
Auction request latency
A delay to auction requests can make a user’s experience good or bad. A 2023 study from SEMrush backs up this idea. Even just one extra second of load time makes a real difference. That single second can lead to 7 percent fewer people taking the action the site wants them to take.
Factors contributing to latency
Network and server – related factors
Slow auction requests usually come from network or server problems. Slow or spotty internet can delay messages between apps, their servers, and advertisers. Rural users with weak cell signal often face long delays for in-app auction requests. Server overload is another common cause of these delays. A server swamped with too many requests can’t process auctions fast enough. A sudden spike in users, like during an e-commerce app flash sale, can overload servers and cause delays. Here’s a simple tip to fix these delays. Check your network setups regularly, and use a Content Delivery Network, or CDN. CDNs cut down delays and spread out work to lighten server loads. Akamai is a CDN provider that says CDNs speed up server response times.
External factors
Delays can come from outside factors, like connections to services run by other companies. Lots of apps rely on these outside services. Common examples are analytics tools, ad networks, and identity check tools. Each connection adds a little extra complexity. It can also add extra delay to how fast the app runs. If an app uses an outside analytics tool, that tool has its own servers and processing systems. The time it takes to send data to that service can slow down ad auction requests. Official regulations can also slow processes down. For example, apps in areas with strict privacy laws have to run extra checks. Those extra checks add even more delay. There are a few simple steps you can take to fix this. First, carefully review all your outside service connections. Pick providers that are known for having very little consistent delay. Cut any outside services you don’t actually need. Segment is a great fast-performing option for analytics. Rubicon Project is a high-speed choice for ecommerce uses.
Database – related factors
Database issues are a top cause of slow auction requests. Databases need to be optimized for fast, high-volume auction use. Redis is an in-memory data storage tool that pulls up data with almost no delay. Auction app databases have to handle growing numbers of users and items. Poorly organized databases can cause slow searches and lag. If an app has lots of tables that aren’t indexed, the database may take a long time to fetch needed auction data. Redis works great as a database cache to cut down on repeated queries. Use our database performance tool to find and fix bottlenecks. Key Takeaways.
- How long an auction request takes to go through depends mostly on two main things. These are network issues and server problems. For example, you might have a really slow internet connection. Sometimes servers are handling way too much work at once.
- Delays can come from factors outside of your control. One common cause is having to follow official set rules. Another is linking your systems to those of outside groups. Both of these outside issues can make your work take longer.
- Badly organized databases and clunky data searches can slow work way down. You can fix this slowdown using in-memory databases like Redis.
Mobile ad UX optimization
Did you know frustrating app experiences make people delete apps? A 2023 study from SEMrush has some eye-opening stats. It found 60% of users will stop using an app entirely. They leave if ads are annoying or the app loads too slowly. This number shows how important it is to make mobile ads work well for users. One key way to do this is speeding up ad request load times. Researchers have suggested a new algorithm to cut average load times for users. The algorithm places content using a step-by-step rising price auction system. Test results show this new content-saving approach works much better overall. It performs 24% better on average than the most common old system. That old system just pre-saves the most popular content to load faster. All this info comes from page 5 of the cited source.
Practical Example
Take a look at a regular news reading app. Its ads used to take really long to load. That made tons of people leave the app right away. The app used a special step-by-step system to fix this. The system cuts down wait times, just like the one we mentioned earlier. Now ads load way faster for everyone who uses the app. How much people use the app has gone up 15 percent. People also see more total ads when they browse the app now.
Actionable Tip
You can use Google Analytics to look at user feedback about your app experience. This tool helps you figure out why users stop using ads. It also lets you see why users get frustrated with the app. You can then use that data to make helpful improvements.
Comparison Table
| Aspect | Traditional Ad Loading | Optimized Ad Loading |
|---|---|---|
| Latency | High | Low (up to 24% reduction) |
| User Engagement | Low | High |
| Ad Impressions | Low | High |
Technical Checklist
- You can cut down on annoying online load wait times. All you need to do is use a special set of rules. These rules put digital content closer to the people accessing it. This helps the content load much faster for anyone trying to view it.
- This is about how long ads take to load. It looks at those times across all different internet speeds.
- Ensure ads are relevant to the user’s interests.
Key Takeaways
- The ads you see on your phone can feel way nicer to interact with. We can make that happen by cutting delays when sending requests to pick which ad loads.
- If you want to make your website work better, there are two key things to do. First, look closely at feedback from people who use your site. You also need to use plans based on actual, collected data.
- Comparison tables and checklists are really helpful. You can use them to test and roll out better ad and user experience fixes. Industry experts recommend Google Partner-certified strategies. These strategies help you do a better job improving how mobile ads work for users. Use our latency tool to figure out how to make your ads load faster.
FAQ
What is mobile app header bidding?
A 2023 SEMrush study covers mobile app header bids. These bids work through a real-time auction system. When you open an app, it sends requests to many ad networks at once. This makes ad networks compete for available ad spots on the app. This competition usually brings in more money than older methods that only use one ad network. An analysis called “How it Works” says this approach gets the most possible ad earnings.
How to choose between SDK and JS bidding integration?
A 2023 SEMrush study found 70% of developers struggle with this choice. JS bidding is easier for web-based platforms. It uses JavaScript in the site’s header. To use SDK-based bidding on mobile apps, you need an SDK built for that operating system. First, figure out what your development and platform can handle. You can find more detailed information in the [SDK vs JS Bidding Integration] section.
Steps for optimizing mobile ad UX?
Ad industry experts say you should focus on cutting auction request wait times. First, put a content placement algorithm in place. Test how long ads take to load on different internet speeds. Third, make sure ads feel relevant to the people seeing them. Google Analytics is a great tool for looking over user feedback. It can raise both user engagement and how many people see your ads. Our Mobile Ad UX Optimization analysis has even more details for you.
SDK vs JS bidding integration: which is better?
SDK bidding needs more app building know-how than JS bidding. JS bidding works well for web-based platforms that use JavaScript. SDK bidders have more experience with individual app needs. JS bidding is pretty fast to set up, but SDK is even faster. Think about what your project needs first, and the tech skills and resources you have. You can find more detailed info in the [SDK vs JS Bidding Integration] section.
