First Price Auction and Second Price Auction – basic differences
What is the First Price Auction model? We answered this question a few months ago in this post on our blog. It was shortly after Google announced the introduction of this ad sales model. Now we would like to compare the two most popular auction models and discuss the differences between them. What is Second Price Auction? Let’s start with an example. We have 3 bidders, each of them proposes the following amounts that they are willing to pay for an ad impression: The bidder – $3.00 Bidder – $3.60 Bidder – $3.30 Who of them wins? The winner will be the highest bidder 2 ($3.60), but the fee to be paid will be the second highest bid in the auction ($3.30) plus $0.01. In this example the winning bidder will pay exactly $3.31. Curiosity It is worth mentioning that the model currently called Second Price Auction,…
What is banner blidness?
Some experts say that the term of banner blidness is outdated. However internet users more and more often leave out informations that they perceive only as advertising. Although advertisement benchmarks have changed, banner blidness is still common. How to fight it effectively? Click „skip” We are living in the time where online advertisements are more popular than ever. We have the biggest internes user and advertisement percentage than ever. Over time, the recepients become tired because of a lot of online advertisements and have started to ignore them. Probably not many Internet users can admit that they never omitted advertising or installed adblock. It does not means that everybody who will 677u and is not interested in. Quite the opposite – in the case of an attempt to reach the target group, it is enough to remember a few important principles that increase the chances that we will not be…
Artificial intelligence – revolution for the advertising world
Artificial intelligence is a subject of articles written by the marketing industry. It is being talked about more and more often in the context of the market revolution. What is really meant by this concept? How will AI affect programmatic? What does AI give us? Artificial intelligence is a general term used to describe the ability of machines to perform specific tasks. AI collects all data, including those that are not structured and draws useful conclusions from them quickly. This allows marketers to make the right decisions faster. Artificial intelligence can also define which resources we should use for communication and which channel we should choose. Thanks to this, we are able to receive personalized ads not only on the basis of interests but also based on the mood or context of the shopping environment. How we use it today? Market uses AI in the media buying proces. AI makes…
Google introduces the first price auction model
In last weeks, Google announced that by the end of the year will introduce the first price auction model. Why did they decided to do this right now? What the first price auction is? Before the first price model has launched we have only the second price auction model. It consisted in the fact that the winner has to bought placement for one cent more than the second highest offer. Today we use mainly the first price auctions in which the winners pay as much as he actually offered – the highest price. Thus, the second price offer does not affect the final amount in any way. First price auction in Google Most DSP and SSP vendors switched to first price auctions much earlier than Google. Industry experts have wondered when this moment will come. This was extremely important due to the fact that the Google advertising ecosystem has globally…
How will the coming months change programmatic?
Last year RODO has starded a revolution in the Internet advertising market. This also applies to the programmatic model which is still waiting for a lot of changes. What else will influence its shape? The introduction of UE directive has made a lot of confusion. Despite this advertisers still want to ivnest in programmatic. According to Zenith, marketers want to spent 65% of budget from digital marketing on programmatic. So expenditure of programmatic advertising will increase from 70 mld USD in 2018 to 84 mld USD in 2019. Nevertheless it is not a secret that programmatic will be change a lot. Here you can find five more important issues that will shape this model in the near future: RODO will stop affect the decisions and actions. Last year, after the entry into force of this regulation, advertisers reduced programmatic use by 20-50%. Despite of the time market is still afraid…
Advertising initiative ads.txt
Technological changes, user expectations and recently formed Better Ads coalition make the online advertising market a real revolution. Transparency and automation process of purchase and sale becoming complicated. Experts said that ads.txt file – placed on the publisher’s website should be the solution.
Uncommon advertising formats – part 2
Ad visibility is a key to measure how well your ads are performing. Proper configuration and selection of suitable format guarantees effective communication. Despite of the dominance of standard advertising formats, new and creative formats types are coming to the industry.