When we wish to buy a new house, measuring metric is the area that occupies rather than the number of rooms or the bathrooms it has. Similarly, sales metric in digital advertising is by impressions. Think of the entire house as the total ad space and each impression as the measuring metric. Seller will naturally align the sales price per each impression.
In real time bidding, advertising inventory is bought or sold by impressions. That's very similar to financial market prices that response and fluctuates immediately based on the demand level. Once the demand is high, price will head towards the higher side and once the demand is slower, it will reduce the price. Instantly. Automatically.
This model exists in digital advertising for some time. Inventories that return better results to marketers due to better transparency, enhanced targeting options, facilitated processes and safer delivery options naturally have a higher demand that lifts their ad impression rates. Marketers that are after the performance and quality are typically savvy in arbitrage and usually achieve their goals earlier.
However, definition of real time bidding is a little more complex than the buying a house example above. Reason is that, the same house is not sold daily. There is not a new house built everyday by the same developer at the same place. Therefore, each 24 hours is a cycle for advertising inventory. And mastering the price patterns require familiarity with such digital platforms, firm observations, accurate predictions, swift decision making and prioritization of networks and channels. Left over inventory might sell cheaper but it may not assure the advertiser that the performance of the campaign will be healthy given that any better bidder might overwrite their lesser expensive campaign in no time.
Osprey Media Lab offers professional services to advertisers for better real time bidding campaign performances. It combines and activates all available resources such as media team, programmatic tools, private ad exchanges and real time bidding all at once to leverage total campaign efforts. Through its extended networks of global, regional and local ad space supplier premium partners, Osprey Media Lab commits delivering the right content to the right audiences, on the right screen, at the right time.
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