White Paper: How dynamic price floors preserve the integrity of the automated advertising ecosystem.

maintaining equilibrium cover

Automated advertising has come a long way in a short time, with media agency Magna Global predicting that up to 80% of digital advertising will be automated by 2017. RTB auctions form the bedrock of both the technology and its growth, whether it be through open auctions or direct orders.

Much of this success has been driven by the prevailing second-price auction model on which programmatic buying is based. This document explains why this model is the most effective way of transacting digital advertising for buyers and sellers alike, outlines the auction conditions required to maintain equilibrium between the two sides, and explains what happens when these conditions are no longer met.

The paper also demonstrates how standard reserve pricing has been shown to be positive for the market and auction dynamics, and look at how new forms of reserve pricing, such as soft floors, jeopardize the integrity of a fair auction marketplace, and therefore the growth of RTB.

Fill out the form below to download this white paper and better understand the dynamics of RTB auctions.

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