What is the purpose of header bidding in programmatic advertising?

The purpose of header bidding in programmatic advertising is to enable the simultaneous offering of inventory to multiple demand sources. This process allows publishers to increase competition for their ad space, resulting in higher potential revenue as multiple advertisers can bid on the same impressions at the same time. Header bidding works by allowing demand partners to place bids on inventory before the ad server makes a decision about which ad to serve. This level of competition can lead to improved fill rates and better pricing for publishers, as they can identify the highest paying advertisers for their available ad space.

In contrast, limiting ad placements to a single demand source would reduce competition and potentially lower revenue for publishers. The concept of decreasing inventory prices for advertisers is not a goal of header bidding; instead, it aims to maximize revenue for publishers. Additionally, header bidding is not related to email marketing strategies, as it specifically pertains to the programmatic advertising landscape and online ad inventory.