In an attempt to increase monetization for publishers and to augment the online experience for users, AppNexus has launched a new multimedia auction technology that will allow publishers to bid with different types of media for the same ad space. This will all be hosted within one auction format and changes the way that publishers compete for ad placements.
While some are hailing the tech as multimedia 'superauctions,' AppNexus has stated that the primary objective is to drive up demand for individual ad spaces by opening up placements to multiple types of media at once.
Typical online ad auctions are run in to allow bidding for a single type of ad format. However, this new tech allows publishers to compete with a wide variety of ad formats for any one ad placement. This will essentially work by allowing a publisher to put forward multiple ad formats, such as banner images, native ads, and video content, into an auction for an ad space.
AppNexus has already partnered with Microsoft and started rolling out multimedia auctions. In the past two months, Microsoft has initiated a multimedia auctions across its MSN properties in over 40 countries. AppNexus has reported that there has been a boost in revenue as high as 60% in some instances.
This isn’t the only big move that AppNexus has implemented recently. The ad tech company has also launched a video ad format known as BannerStream, which has been specifically created to help publishers place video ads in different display ad units. AppNexus claims that the intention of the format is to stabilize browsers and cut down on lag issues.
The new video ad format will be capable of running in all sizes of player formats within a wide range of aspect ratios. Just like other video ad formats, the player will only run content when it is displayed on the screen of a user. In order to improve transparency, it will also identify the format type of instream, outstream, and BannerStream for buyers. It will be compatible for use across all types of devices.
Both of these launches represent a solution to a process that has been an obstruction to the industry for years.
“The new format is a complement to our other video formats, pre-roll, in-stream, and outstream in-article units. [It] enables publishers to get a full CPM vs. video content arbitraged by intermediaries into units meant for banner ads, which have caused latency and result in poor quality,” says Eric Hoffert from AppNexus.
“We wanted to come up with a more publisher, advertiser, and user-friendly way to address the problems that have plagued in-banner video for many years -- something that’s more transparent, where the publisher can capture the benefit vs. the arbitrager. Publishers lose money from in-banner videos, and consumers are being interrupted,” comments Hoffert.
This new ad format will be a test within the industry to see how it can boost demand for ad placement, improve the user experience, and ultimately deliver more effective ads.