Should You Use Waterfall or Header Bidding? Choosing the Best Ad Strategy for 2025
With the changes in the digital advertising landscape, the way publisher sells their ad space is continuously changing and choosing the right strategy is key to maximizing revenue.
Two common methods are Waterfall Bidding and Header Bidding.
Publishers need to understand these methods in detail as they look into maximizing their ad monetizing strategies.
Understanding Waterfall Bidding
A method where the ad inventory is offered to different ad networks in a fixed order allows publishers to prioritize ad networks that have delivered the highest yield in the past.
If the top-tier network cannot fill the inventory, it moves to the next, and so on, until the ad space is filled or all options are exhausted.
Advantages
Simplicity: The waterfall model is easy to implement, making it easier for publishers with limited technical resources to use.
Control: Publishers can choose which ad networks to prioritize, giving them some control over which advertisers appear on their platforms.
Disadvantages
Revenue: If a low-tier ad network offers a higher bid, it will be discarded because the requests never reach them.
Loading Time: Since the process moves one step at a time it ends up delaying ad loading and impacting user experience.
Understanding Header Bidding?
It’s more advanced than the waterfall bidding instead of sending one request at a time, all ad networks get to bid at the same time and the highest bid wins leading to higher CPM.
This allows publishers to maximize their ad revenue by only accepting the highest bid.
Advantages
Revenue: By having multiple bidders at the same time, Publishers can get the highest bid, maximizing their ad revenue.
Transparency: Publishers see all bids and know how much their inventory is worth.
Higher Fill Rates: Having more bidders means ad spaces are more likely to be filled.
Disadvantages
Technical Setup: Header bidding demands technical expertise, such as implementing JavaScript code into the website and managing several demand partners.
Slow Page Speeds: Header bidding will increase the average revenue per ad impression but if not optimized too many bids at once can affect page loading speed.
Waterfall vs Header Bidding: Which One Is Better?
Which Ad Strategy Should You Use in 2025?
Choosing between waterfall and header bidding depends on a few things
If you have a technical team and you’re looking to maximize your revenue header bidding is a better option.
If you want a method that’s easier to set up and requires less technical expertise waterfall method is a better option.
If page speed is a concern, optimize your header bidding setup for better performance.
Final Thoughts
In 2025, header bidding is becoming the method of choice due to higher revenue potential and efficiency, but small publishers or those who do not have a tech team may still prefer waterfall bidding due to its ease of use.
The key is to test both to find out which method performs best for your ad inventory.
How MagicBid Helps You Earn More
If you’re not making the most of your ad space, you’re leaving money on the table.
MagicBid helps web, app, and CTV publishers maximize revenue with smarter ad placement and optimization tools.
- Web Monetization: Get better ad visibility, higher engagement, and more revenue from every impression.
- In-App Monetization: Connect with premium advertisers to effortlessly boost fill rates and eCPMs.
- CTV Monetization: Deliver high-quality, tailored ad experiences that keep viewers engaged and advertisers paying more.
With MagicBid’s advanced ad tech and expert support, you can turn your traffic into higher earnings without the guesswork.
Connect with us now to get a free ad revenue evaluation.