Content marketing company Purch has partnered with Index Exchange for a new server-to-server integration for video header bidding, a tie-up it hopes will it maximize monetization opportunities while still not detracting from consumer experiences.
The integration will allow Purch to simultaneously auction banner and video ads with unlimited demand sources without adding any extra latency on the page, according to the pair.
Purch claims the development will ultimately improve transparency and competition, as many advocates of header bidding argue that adoption of the technology can help them open up to demand from third-party ad exchanges, thus reduce their reliance of the internet’s dominant ad stack (ie Google’s DoubleClick), thus reduce their reliance on ‘waterfalling‘.
By building its own solution, Purch can see every scrap of bidding data, including both winning and losing bids, and the spread between them. Potter considers data key to publishers controlling their inventory and understanding its true value.
While Purch’s move to the server side made sense for the company, Potter doesn’t expect many other publishers will take the same path. For one, publishers must have enough scale to entice their ad tech partners to build their end of the connection. And most publishers don’t employ ad tech engineering teams to build these connections.
“Publishers will have to wait for someone to productize it for the most part,” Potter predicted. “I think this is going to be slower than header bidding because it’s harder to implement.”
That said, Potter says Google’s exchange bidding product could see swift adoption and publishers will realize the gains of speed that come with server-to-server connections.
“When exchange bidding is rolled out as a full-fledged product to people,” he said, “it will go quickly.”
Purch, a digital content and commerce firm, on Wednesday announced a new server-to-server integration for video header bidding in partnership with Index Exchange. The integration aims to reduce latency issues to offer a better online experience for consumers, while also improving transparency and competition for both publishers and third-party exchanges.
While header bidding is known to reduce latency compared to the traditional tag-based waterfall, server-to-server integrations represent the next step in the evolution of bidding on inventory. Through the new integration, Purch can simultaneously auction banner and video ads with unlimited demand sources, without adding extra latency on the page.
“We’ve invested in building our own solution to connect to multiple exchanges via server-to-server connections, which we believe is inherently faster and leads to a better experience for our users,” John Potter, chief technology officer, Purch, told Real-Time Daily via email. “Through the Index Exchange partnership, we’re expecting a 30%-50% increase in yield.”
Potter added that most of the industry still relies heavily on a traditional header bidding approach, which runs on the client side and can affect site speed and performance. Server-to-server integrations enable multiple bids to be collected in the background without impacting a consumer’s online experience. Bid responses are also believed to be faster, resulting in more competition between bidders and higher revenue. With the new integration, “We’ve now taken this a step further, bringing this technology to video, an area of programmatic that is far behind display,” Potter said.
New video advertising capabilities improve user experience, reduce latency on sites and increase ROI
NEW YORK, December 7, 2016 – Purch, a digital publisher that connects content to commerce, today announced a new server-to-server integration for video header bidding in partnership with Index Exchange, the principled ad exchange for publishers. These new capabilities, built upon years of Purch’s programmatic innovation with standard media, reduce latency issues, resulting in a better experience for users, while also improving transparency and competition for both the publisher and third-party exchanges.
“One of the biggest challenges to publishers is to balance greater monetization with a positive user experience. At Purch, we’ve always put the interests of the user first,” said John Potter, Chief Technology Officer at Purch. “Instead of taking the more common approach to video header bidding, we’ve invested in building our own solution to connect to multiple exchanges via server-to-server connections, which is inherently faster and leads to a better experience for our users. Through the Index Exchange partnership, we’re expecting a 30-50% increase in yield.”
While header bidding significantly reduces latency compared to the traditional tag-based waterfall, server-to-server integrations represent a new chapter of advancement. Through this integration, Purch can simultaneously auction banner and video ads with unlimited demand sources – without adding any extra latency on the page.
“While we’re almost a full decade into the era of programmatic for display, innovation in the programmatic video supply chain has lagged behind, often still widely reliant on the waterfall model. In the case of Purch, we’re witnessing a level of innovation not yet seen in typical publisher video monetization models,” said Shael Fryer, VP of Enterprise at Index Exchange. “Purch is ensuring they are maximizing their transparency within the bidding landscape which will ultimately garner a better ROI.”
Internet publishers face a programmatic advertising market that is still incredibly fragmented on the demand side. Given the continued move of advertising dollars to programmatic, this fragmentation is costing publishers a lot of money.
Over the last couple of years, publishers have responded by embracing header bidding. Before header bidding, publishers who used DoubleClick for Publishers (DFP) as their ad server had to rely on the integrated Google Ad Exchange, and to work independently with other demand sources — passing inventory to each, one by one, to try and maximize yield.
At every step of this waterfall approach, publishers would lose inventory and revenue. Moreover, there was no true competition with Google Ad Exchange.
Header bidding improved on this by allowing publishers to gather bids from other demand sources and pass them into their ad server, where they could compete with AdExchange, and raise their yield without the loss of inventory.