Hey,

Hyperbidder, Inc.(www.hyperbidder.com), is already doing all that and they are far more superior when it comes to selling ad space through auction. They sell ad space for large Publishers such as NBC/Universal, and their method is very fair. The higher the advertiser’s bid is, the more frequently the ad is shown on that specific ad space. With Hyperbidder’s auction, every advertiser determine the real ad value of each ad space on the Internet. Hyperbidder creates a real ad marketplace, and competition for the same ad space.

Posted by Gio Talegon | 12:08 pm on June 23, 2006.

Bid Based or auction models let the advertisers determine the market value of each click. We have worked on that basis for the past 2-1/2 years.

Posted by John Kerr | 12:52 pm on June 23, 2006.

This is a great explanation Bill and its a hot topic.

I saw a press release from Right Media that said they are serving 2 billion impressions a day. I don’t know about others but I’m a publisher and am happy. Their literature says they are an open exchange, and i’d try adecn if they are too.

I was sick of daisy chaining from this network to that network, losing impressions and delaying my pageloads. In Yield Manager (Rightmedia’s technology), I’ve been able to traffic in advertiser campaigns, my network deals, link easily to many other buyers and ban advertisers or creatives I don’t want. Their interface is very simple too.

A new model has arrived. Praise the Lord and pass the CPMs.

Posted by John N | 7:59 pm on June 23, 2006.

This auction based model is horrible. I’d rather take Tribal Fusion, Value Click Media, and Casale over them any day. I tried that Yield Manager program thing and it was pathetic. I am earning .80 CPM from Tribal Fusion and Casale for my USA traffic. Under this Yield Manager, I earn around .07 CPM. This is a horrid technology that will KILL the CPM industry. The only one that win is Yield Manager and the advertiser. The web site is left with holding the bag. I did a test with all four networks mentioned, and for over one month Casale, Tribal Fusion and Value Click Media were all averaging well over .60 CPM. Yield manager was averaging .07 – .10. If the traffic is the same, then the pricing should be constant. Yield manager is completely useless in the CPM arena and is killing the industry. Congratulations guys, I hope your happy with what you started. It will not be long until other users of their system figure this out.

I also used Adknowledge, Yahoo, and Google on my sites. All three programs netted me well over .30 eCPM. True CPC and CPM networks are the way to go. Advertisers and Yield manager are the only ones that win in this auction based scenerio.

Posted by Dann Cummings | 2:21 pm on June 24, 2006.

Dann,

what you’re experiencing is the reality of an auction. Your ad inventory is lower quality so you generated lower CPM. Back in the day, the big networks would pay lower to higher quality sites to overpay the lower quality sites. You are the type of publisher that I was subsidizing all these years.

For that reason, some publishers won’t like auctions, but alot will.

Posted by John N | 9:58 pm on June 24, 2006.

Johnny

Apparently you do not read entire posts before you respond. If what you say was the case then I would have been either receiving lower rates from Casale, Value Click Media, and Tribal Fusion This is not the case. My rates are as strong as ever with these three and Google, Yahoo, etc. I have only worked with two of the networks which use the Yield Manager system, rates are basically the same. For example one 22000 impressions served on the 8th of June earned an CPM rate of .09 with 296 conversions. If my traffic was not converting I think I would have little conversions. This just shows the auction system is not true to helping publishers on a level playing field. Since my rates are ten times higher than Yield Manager with the other networks mentioned then it would safe to say they do not offer a true rate on a publishers site. Rather they offer a rate where the advertiser gets the inventory for cheap and Yield Manager gets their fee. I also think Yield Manager takes a piece of the profits or some sort of fee. With that said Yield Manager has no incentive to help the publisher better their rates since they make money regardless. As more and more publishers really look into this solution they will see they are loosing more money by use their service over a standard quality CPM network.

Posted by Dann Cummings | 7:12 am on June 25, 2006.

Oh Danny Boy,

As I said, each of those networks is paying you higher because they are paying someone with better inventory less than they should be. Used to be my sites. Not anymore.

Good publishers – look at auctions like adecn and yield manager.

Posted by John N | 10:17 pm on June 25, 2006.

You discard Google’s Ad sense because Google get paid on the click through not the impression as you discussed. The Google model is designed to do two things, make the most money and serve up the most relevant content. So what determines the position of your ad is your CTR is influenced by your user’s votes or clicks. What makes this is a very interesting model that it’s serves relevant content so it’s not just advertising space.

Posted by Auctioneer | 5:03 pm on August 7, 2006.

Absolutely correct that the brokering advertising must be replaced with auction based type. It makes total sense because of the economies of scale. It is the same with forward online auctions. This should change to online auctions in reverse. Buyers should decide how much they want to pay and who to buy from not the sellers. Here is what I mean http://www.oltiby.com

Posted by auctionpro | 11:52 pm on October 9, 2006.