What is ad inventory arbitrage? How is it different from traffic arbitrage and who benefits from it? Is it dying? And if so, what is killing the ad inventory arbitrage industry? But most importantly – how does all this influence you, the publisher. Between the advertiser and the audience there are multiple entities, each taking a percentage of the advertiser’s investment. This is called inventory arbitraging. Ad agencies, trading desks, networks, and all sorts of “middle-men” have existed since the first editor of a publication said: “I am tired of talking to advertisers”. Inventory arbitrage refers to a practice used by ad industry mediators, such as ad agencies, trading desks or networks, of buying ad space directly from publishers and selling it at a higher price to advertisers. The margin between inventory bought (from publishers) and sold (to advertisers) is how these companies generate revenue. More middle-men have squeezed their way into the arbitrage equation, and it’s no longer just agencies and trading desks. It’s complex algorithms sitting on RTB exchanges, and reselling repackaged traffic across exchanges, often by taking advantage of network latency issues. At this point, you’re probably developing a thorough dislike of these middle-men. If they’re getting a piece of the cake, this means less cake for you, as a publisher. But the very existence of middlemen implies they have a role to play in the digital ad market. The most important role arbitrageurs have in the ad market is reach and exposure. It’s better to share the cake than have none at all. With the help of arbitrage agencies, advertisers can (for a fee, of course) reach more publications. And publishers can fill ad spaces that would otherwise go unmonetized. The consolidation of the ad market and the improvement in communication between exchanges, DSPs and SSPs, forced arbitrageurs to evolve. To continue charging advertisers a premium for each view or click, they had to create added value for their clients. This evolution brought in another variable into the arbitrage equation – data. Agencies began to collect user data and develop optimization algorithms. For example, using machine learning and user profiling, agencies could purchase inventory at CPM, but offer the advertiser performance-based pricing (CPA). They call it “strategic media buying”, and advertisers often prefer these types of deals as they get a much better picture of their digital advertising ROI. Despite the above mentioned contribution arbitrageurs have to the ad market, they are often seen as vultures, preying on advertising budgets while contributing little to the ecosystem. Trading in inventory without adding value is often seen as plain exploitation of the system. For example, an inventory trader can purchase banner placement on a publication (or several) at CPM. He can then sell this placement to video demand channels at a much higher cost in CPV. In-banner video is just one of the techniques arbitrage traders use. Another major issue with ad inventory arbitrage is that views get repackaged, re-purposed and resold once or more before the advertiser creative pops up in an ad spot. The more times the traffic “cycles” through the system, the harder it is to tell its source. There’s no lack of black-hat traffic generation techniques, many of them using clickbots, botnets and other naughty things to get you banned on AdSense and other networks. When mixed in with legitimate ad views, this traffic poisons the pool, creating low performance for advertisers and a loss of trust in the automated ad trading market. So it’s no surprise exchanges, DSPs and ad networks like AppNexus and Facebook ban all inventory arbitrage using their platforms. But as long as there’s a need for them, the middle-men will still be there, exploiting the margins. But what does all this mean for you, the publisher? That you too need to evolve. Offering your inventory to a select DSP or even sticking to direct sales only will eliminate the middlemen and their profit. But it will also limit the demand sources for your inventory, preventing you from getting the highest possible bid for every placement. On the other hand, offering your unsold inventory on the open RTB market can be a scary endeavor, opening your inventory to reselling and loss of value. Read the full post on the Pangeo blog Source: Free Articles from ArticlesFactory.com Eyal Katz is head of marketing at Pangeo. Eyal also likes long walks on the beach at sunset, having a cocktail with friends, and listening to Swedish Death Metal .
Top blog stories
A review of Idmobile.com
Idmobile.com offers both pay-as-you-go and contract plans. Pay-as-you-go plans are ideal for customers who don't want to be tied down to a long-term contract, and they can purchase bundles of data, minutes, and texts as and when they need them.
Idmobile.com offers both pay-as-you-go and contract plans. Pay-as-you-go plans are ideal for customers who don't want to be tied down to a long-term contract, and they can purchase bundles of data, minutes, and texts as and when they need them.
AO.co is a trusted expert in TVs, washing machines, clothes dryers and other household appliances. AO.com is one of the largest retailers in the UK and it specializes in electronics, clothes and home furniture.
At Three, we believe phones are good. They just make life better. Easier. And more fun. But
we all need to find a balance that works for us. Our mission is to help our customers use
their phones to live their best lives.
We make your life easier
Since 1992, we’ve been helping customers get the best deal on their dream phone. We firmly believe in giving you the highest quality, for the lowest price. That’s why we work with three of the UK’s leading networks to do all the haggling for you,...
At Halfords, we're all about the journey. With more than 700 stores with over 10,000 colleagues, we're the UK's leading retailer of automotive and cycling products. We are also the leading operator in MOT, tyres, car servicing and car repairs - pleasing more than 750,000 customers every year.
It's important to us that everyone gets great customer service and can enjoy our products, no matter their level of sight. So, if you're blind, partially sighted or struggle to see or read the screen, we’ve a range of features to help you get the most from our products and...
Look iconic, without the hassle— using Nasty Gal discount codes, you can shop your favorite pieces for way less by simply entering one of our promotional codes (of your choice) at the checkout. From delivery offers, to promo deals, we keep ‘em coming, so you always have the offer you...
The Covid-19 has caused the school and universities to shut down around the world creating a major issue in Learning and Education. As this virus spreads through the interaction and if social distanci... The Covid-19 has caused the school and universities to shut down around the world creating a major...
Why its Important to Manage Your Holiday Calendars?
A printable calendar 2021 is a prominent online platform where you download printable calendars of your choice. These calendars can be customized as per our client requirement with photo, text, logo, or any other image. If you are thinking of planning a dream vacation tour with family and kids but...
Make in India marketing campaign released via Prime Minister Narendra Modi in September 2014. It is an initiative to make India’s name on the top business investors list all over the globe. It is a large opportunity for all the traders to create their enterprise in any field anywhere inside...
The Swachh Bharat Mission Program is an initiative of the national government and is coordinated with the aid of the MDWS. However, responsibility for its implementation is with the state and rural local governments. The Swachh Bharat Mission Program is an initiative of the national government and is coordinated with...
The government of India introduces many programs to enhance the lifestyles and living requirements of the Indians. Pradhan Mantri Kaushal Vikas Yojna (PMKVY) is one of the Applications the Government of India The government of India introduces many programs to enhance the lifestyles and living requirements of the Indians. Pradhan...
Digital India is an ambitious challenge for the Government of India to digitally empowered inside the area of the era. This task was launched on 1 July 2015 by means of Shri. Narendra Modi. Digital India is an ambitious challenge for the Government of India to digitally empowered inside the...
DigiLocker gives a committed private storage space, linked to each resident’s Aadhaar number. DigiLocker may be used to soundly save e-files as well as keep Uniform Resource Identifier (URI) hyperlink of e-files issued by using diverse company departments. The e-Sign facility provided as a part of the DigiLocker machine can...
Liberals Latest Politics news are checking out regulations in which drive tech giants like Facebook and Google to share promotion dollars with community media to Restrict the spread of coronavirus. ‘It was so thick’: B.C. girl’s huge spider Image horrifies, but professionals say to not fear 4075 Read One of...
The interim price range has introduced much good news for the loads and for folkss who belong to the weaker sections of the society along with folks that really want welfare schemes. One such welfare scheme commenced through the contemporary government is Atal Pension Yojana. Atal Pension Yojana is top-notch...
In current scenario ,US -China relations have become worse than even before.This article is analysis of trade sanctions between US -China,Covid -19 effect on US and upcoming presidential election in US. The Trump administration and the Chinese government are going head to head over the Coronavirus. Xi Jinping and Donald...
Hunter S. Thompson made a life's work from pursuing the American dream. Read on as we explore a handful of his greatest adventures. From politics to literature, to getting lost in the wilds of Las Vegas, nobody has used their allotted time on the planet quite like Hunter S. Thompson. ...
The Standard of living is the level of material goods, wealth, necessities, and comfort available to a particular socioeconomic group, mostly a nation. It includes factors like poverty rate, income, employment availability, and quality, Gross Domestic Product, political and economic stability, national economic growth, house affordability and quality, the expectancy...
Search topic
Standard of Living Essay
The Standard of living is the level of material goods, wealth, necessities, and comfort available to a particular socioeconomic group, mostly a nation. It includes factors like poverty rate, income, employment availability, and quality, Gross Domestic Product, political and economic stability, national economic growth, house affordability and quality, the expectancy...