In an ideal world, online auctions would work like their real life counterparts, with each bidder allowed to bid fairly and at the same time. In reality, however, many online auctions are set up in a way that segments the bidders and doesn’t allow them to bid simultaneously. 

Here’s how it works: publishers set up what’s called a waterfall for their auctions, where the priority of the ad server is focused on the category of buyer rather than the delivery of the best ad. 

The problem with that setup, however, is that the ad with the highest CPM or that is best for each user doesn’t always win. Inefficiencies within this system led to the introduction of header bidding, which gives publishers the ability to set up an auction that allows multiple demand sources to bid on valuable inventory at the same time, leveling the playing field and increasing competition. 

So, how are we solving for waterfalls and header bidding? The answer is that the LiveIntent platform is a true auction environment, which means that there are no waterfalls or other issues like latency or passbacks. Over on the blog, VP of Platform Development Kerel Cooper walks through the differences between waterfalls and header bidding, and how LiveIntent’s platform runs a true auction on every single impression