Tip:
Highlight text to annotate it
X
SCOTT SPENCER: With the growth of exchange-based buying and
real-time bidding, buyers are becoming increasingly
sophisticated in terms of how they set their bid, while on
the other side, publishers are becoming more sophisticated in
terms of how they want to manage
their pricing on exchanges.
NEMO SEMRET: The single most important tool in managing
pricing for a publisher is the min CPM, or the reserve price
in the auction that they set on a per ad
unit level or ad slot.
The difficulty there is that if you set it too high or too
low, it could be very costly.
If you set it too high, you might be missing on some
transactions that you would like to have, and if you set
it too low, particularly when demand is thin-- in other
words, if there's periods when there aren't too many bids for
a given impression--
you might be leaving a lot of money on the table.
SCOTT SPENCER: It can be very expensive for publishers to
find out the right price.
They use trial and error.
There's a lot of experimentation.
That can be time-consuming and costly.
On the DoubleClick Ad Exchange, we wanted to provide
customers with better tools to be able to
set their min price.
NEMO SEMRET: We've created an algorithm that looks at the
right set of historical transactions, including both
winning and losing bids for the publisher, to produce min
CPM recommendations that they can use going forward.
SCOTT SPENCER: Practically, the way this works is
sometimes it's better to have a low min CPM, allowing more
transactions to happen at a lower price.
And sometimes it's better to have a higher min CPM, where
you have fewer transactions, but the transactions that you
do have are happening at a higher price.
These recommendations are now available directly in
DoubleClick Ad Exchange, with a new feature called
"Recommended Minimum CPM." This feature allows sellers to
see an optimal minimum price recommendation for each
eligible ad slot, directly within the UI.
Publishers also gain new insights into the overall ad
exchange demand landscape, since we show the impact of a
range of minimum prices on a graph.
Early users have seen an average 20% sustained lift in
revenue for adopted recommendations.
Ad Exchange publishers can take advantage of these
insights today directly from the My Ads tab.
If you're not already using the Ad Exchange, contact your
publisher sales representative to learn more about all the
ways that DoubleClick Ad Exchange can help you profit
on your terms.