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,…
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…
The future of programmatic model after GDPR
The basis of media buying in the programmatic model is precise targeting. Demography, geolocation, interests, shopping behavior – all this allows advertisers to reach the target audience with the message. However, the new regulations imposed by the GDPR cause a wide limitation of access to user data. This in turn forces advertisers to submit to the new digital reality. The changes we are witnessing are opportunity or a threat to the industry?
Maximizing revenues during the holiday season
Easter is not only a season of special discounts, but also tense time for advertisers. Without a doubt, the holiday season brings the highest CPM values throughout the year. It is important, that every publisher should have a strategy to use holidays to maximize website revenue. What is worth paying attention the most? Answer below.
5 ways to increase fill rate
There are nearly one billion four hundred million websites on the Internet! A big part of them take advantege of advertising to earn money on traffic generate by visitors. For some publisher it is a main source of income and that is the reason they want to earn on every views as efficiently as possible. Fill rate come to succour them.
Publisher’s guide to video advertising
Due to a great number of formats and the viewers’ attention focused on image, digital video advertising gives the publishers a chance to increase revenues from advertising space. Creating an effective strategy for video monetization is only possible with the right method, accurate measurement and optimization. How to do it? The answer is to be found in the following article.
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.
Uncommon advertising formats
Online advertising has become an inseparable part of all marketing budgets of companies around the world. No wonder. There are over 3.5 billion active Internet users. How to reach them with advertising message?