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'.
However, detractors of the technology maintain that opening up to multiple sources of advertiser demand in real-time (ie when the publishers' ad stack has to listen to multiple bids on an ad impression while a webpage loads) can negatively impact the user experience over latency issues.
However, both Index Exchange and Purch maintain they have found a means of striking a balance, with Andre Baden-Semper, vice president of sales and marketing for Europe at Purch, forecasting that the partnership will produce at 30-50% increase in advertising yield.
"One of the biggest challenges to publishers is to balance greater monetisation with a positive user experience. At Purch, we've always put the interests of the user first," he said. "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."
Shael Fryer, vice president of enterprise at Index Exchange, added: “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. Purch is ensuring they are maximising their transparency within the bidding landscape which will ultimately garner a better ROI."