Karolina BendrykUsing client-side bidding faces challenges. The disappearance of third-party cookies and increasingly strict privacy regulations are the main reasons for that.
Server-side bidding solves those issues. It is no longer just an option but a strategic necessity for publishers looking to scale revenue without compromising performance.
Its implementation is more complex than client-side. However, third-party managed alternatives and white-label solutions can save you significant time and effort.
Critical for specific niches. While not every publisher is required to switch yet, server-side bidding is practically unavoidable for CTV streamers and mobile app owners.
TeqBlaze can help with the transition. Our white-label SSP provides everything needed for seamless integration with Prebid Server, alongside a suite of unique monetization features.
Statistics show that header bidding can outperform traditional waterfalls by 20–30%. It’s no surprise, then, that as of Q1 2022 over 70% of publishers have already made the switch. What’s interesting, however, is that the vast majority still rely on client-side header bidding because it is easier to set up, while server-side has been out of reach for years. Now the tide is turning. Moving to server-side header bidding is no longer a question of 'if,' but 'when.' Why? To answer this, let's remember what server-side is and how it changes your monetization and revenue.
What is server-side bidding?
Server-Side Bidding (SSB) is a header bidding model in which the ad auction process is moved from the user’s web browser to an external server. It emerged as a solution to the limitations of client-side header bidding, which relies on the users’ browsers to run the auction.
Server-side bidding vs client-side: key differences
Feature | Client-Side Header Bidding | Server-Side Header Bidding |
Auction environment | User's browser. | External server. |
Latency | High. Depends on the user's device and internet connection speed. | Minimal. Powered by high-speed data center connections, significantly reduced impact on page load speed. |
Transparency | High. Publishers can audit raw bid data and responses directly via the browser console. | Self-hosted servers offer full log-level visibility; third-party alternatives (like Google Open Bidding) only provide basic auction metrics. |
Scalability | Limited. Each added partner potentially increases latency. Typically optimized to 10–15 bidders to prevent lag. | High. No strict limits on the number of bidders. |
How server-side bidding works: step-by-step workflow
The simplest part is implementing a JavaScript script (wrapper) on the website or app. This script initiates a server connection each time a user visits. The hardest task is deploying the server itself, which is an additional responsibility for the publisher. While some companies choose to build their own infrastructure using open-source tools like Prebid Server, there are alternative solutions.
For example, you can use servers managed by large external SSPs. Google has its own specific tool called Open Bidding. It is available by default within Google Ad Manager. Finally, it is possible to acquire the necessary infrastructure by investing in your own programmatic platforms, such as a white-label SSP. They typically include integrated Prebid adapters and preconfigured server resources out-of-the-box.
In general, the whole server-side header bidding process includes the following steps:
1. Page load
The wrapper is activated when a user opens the website/app.
2. Bid request
The wrapper sends a request to the server with essential metadata: ad slot sizes, page URL, and anonymized user signals (collected from publishers' first-party data or other sources).
3. Cloud auction
The server reissues a request to SSPs, Ad Exchanges, and DSPs to which the publisher is connected, and identifies the winning bid.
4. Server response
The server transmits the auction results back to the wrapper. This response includes bid metadata (the price) and the creative markup (the actual ad content, its format, and dimensions).
5. Ad rendering
The final step depends on the publisher’s setup:
With an ad server (e.g., GAM): The wrapper passes the bid data to the ad server for comparison with other demand sources (such as Google Exchange) before serving an ad.
Without an ad server: The wrapper directly injects the winning creative into the designated ad placement on the page.
Why not client-side? Benefits of server-side bidding for publishers
The ongoing privacy pressures, browser fragmentation, and regulatory trends undermine client-side header bidding, which has historically relied on cookies for targeting and addressability. Rising demands of privacy regulations and concerns over website/app performance delay add an additional layer of complexity. Alternatively, the server-side ecosystem offers more flexibility here, including:
Scalability. As mentioned before, publishers can add almost as many SSPs as they like without impacting their website’s or app’s performance. And they can use any alternative to cookies solutions to compensate for signal loss.
Reduced ad fraud exposure. Browser-based auctions are open to bots, which can not only observe bidding activity but also simulate user behavior. Moving the auction to the server reduces (but unfortunately does not entirely eliminate) this risk, as the bidding logic remains hidden and inaccessible to bots.
CTV/OTT support. Traditional client-side header bidding is technically impossible on Smart TV and OTT devices due to the absence of a standard browser environment and limited processing power. In contrast, there are no such limitations when using a server to handle an auction.
Challenges of server-side bidding
Challenge | Reason | Solution |
Cookie sync issues | Direct access to cookies is limited, which can lower Match Rates. | Implementing alternatives to cookie solutions (e.g., UID 2.0, ID5) or passing first-party data within the bid request. |
Reduced transparency for buyers | Advertisers (DSPs) lack direct browser signals and may be concerned about potential price manipulation or lack of visibility. | Using Sellers.json and Supply Chain Object. |
Higher infrastructure costs | Building from scratch requires significant investments, time, and a dedicated team. | Leveraging third-party managed platforms or white-label SSPs to eliminate the need to build yourself. |
Implementation complexity | Compared to client-side setups, server-side bidding requires a technical team to implement and support. | Partnering with third-party providers or investing in a white-label SSP where the vendor handles hosting and technical updates. |
When to use server-side bidding?
It can be used in a hybrid setup alongside client-side bidding or independently — it is up to you to determine the best strategy for your setup. Still, there are some categories of publishers that benefit the most from implementing server-side programmatic bidding:
High-traffic content publishers
The larger your content volume and audience, the greater your need to scale revenue. At this stage, the limitations of client-side bidding — such as limited demand partner counts and negative impacts on page load speed — become barriers to yield growth. A server-side solution allows you to maximize competition without compromising the user experience.
CTV/OTT platforms and App Owners
As mentioned previously, client-side bidding is technically incompatible with CTV and OTT environments. Beyond that, implementing server-side infrastructure helps app owners avoid installing multiple SDKs, thereby resolving performance issues.
Cookieless-ready businesses
This is the go-to solution for publishers proactively preparing for the Post-Cookie era. Server-side architecture enables the secure integration of Universal IDs and the activation of First-Party Data within a controlled environment. This enables more precise targeting and maintains high inventory value even without traditional third-party cookies.
How TeqBlaze helps you scale
Implementing server-side header bidding doesn’t have to be that complex if you use the right approach. Instead of building the required infrastructure from scratch, TeqBlaze offers a production-ready white-label SSP or Ad Exchange solution that can be launched under your own brand in just a few weeks. We are an active member of the Prebid community, but our platforms support a wide array of integrations beyond Prebid Server. We handle the full infrastructure deployment and technical maintenance, while you can focus on business growth.
Beyond these, our white-label SSP/Ad Exchange provides a range of unique features, including:
Transparency: You access granular auction data rather than aggregated reports, enabling deeper market insights and more effective strategy optimization.
Omnichannel support: Our SSP platform allows you to manage all advertising channels — Web, Mobile, TV, OTT, and DOOH — through a single, intuitive interface.
Technical support: Every client receives dedicated technical and AdOps support.
Final thoughts
Transitioning to server-side programmatic bidding is a strategic necessity, not just a nice-to-have feature. While it requires investments and other resources, you still don’t need to do everything yourself. TeqBlaze is ready to assist you by handling technical issues, allowing you to focus fully on strategy. Ready to see it in action? Book a demo of our SSP today. To learn more about us, feel free to explore our client feedback and reviews.
FAQ
What is server-side bidding?
A header bidding technology that shifts the ad auction from the user’s browser to a remote server.
Server-side bidding vs header-bidding: how are they different?
Traditional header bidding relies on the user's browser to handle auctions; SSB moves auctions to the specifically built server.
Does server-side bidding affect ad revenue?
Yes. It increases yield by allowing you to connect with more bidders simultaneously without slowing down your site or app.
Is server-side bidding suitable for mobile apps?
Absolutely. In fact, it is the primary method for selling inventory from mobile applications.
What is Prebid Server, and how does it relate to SSB?
Prebid Server is the industry-standard open-source technology that any publisher can use to build their own SSB infrastructure. However, deploying it requires dedicated technical resources.
