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...
Dog coughing can be due to various reasons ranging from heart condition to pneumonia. Dog coughing should not be ignored as dogs are notorious about hiding pain and physial symptoms. Read this article and understand what can be a reason for your dog cough. We often feel helpless as we...
Your dog's dental wellbeing is no less significant as your own and ought to be something you must take care. Although vets online or local vets are available for consultation, but this article will ac... Your dog's dental wellbeing is no less significant as your own and ought to be...
Purchasing your phone and laptop online is a good choice but what if you are going to purchase pet food from effective pet shop online India? Pet food is one of the most loved things for people and if you are among those people who don’t want to waste their...
Many people consider dog jumping as terrible, especially when it jumps to everyone who comes to your house. However, dog jumping can be a great trait if you train it with good behavior. Especially when you start training your pooch when he or she is able to start jumping. Are...
Tips for choosing the perfect pet food will help you to deliver a wholesome balanced diet to your pet for their well-being. Walk down any pet food aisle and it’s convenient to see how you can spend hours analyzing many options. While the decision-making process may look confusing, these tips...
These White German Shepherds with plush white coats, a good intellect, sporty, and an over-all fun and healthy breed have a remarkable pedigree! This beautiful dog is directly bred from the German Shepherd family with a white coat gene of beautiful recessive white fur. So if you want an adorable...
Though some might believe that offline or in-person classes are much more effective than online classes when it comes to training your dog, there are several reasons to believe otherwise. Virtual dog training classes are just as effective as in-person classes or even more due to the various reasons, which...
When we talk about white cats and kittens in particular no matter the breed, we cannot help but get awed by that graceful color. Be it a short-haired crystal or a fluffy marshmallow, that crisp white color definitely serves as an inspiration to give your pet a name. Meow! Meow!...
1. Loss of willingness in eating or drinking It is natural with animals as they draw nearer to the end they stop eating or drinking. This is mainly because they are too tired and also very sick and h... It is natural with animals as they draw nearer to the...
Pets are associated with love and kindness. In this day and age, they are our loyal companions and we are entrusted for their health and well being. Despite our efforts and constant caring, they can run into trouble, especially they are prone to catch diseases. Our pets cannot tell us...
Search topic
Dog Upset Stomach - What To Give For Vomiting
Pets are associated with love and kindness. In this day and age, they are our loyal companions and we are entrusted for their health and well being. Despite our efforts and constant caring, they can run into trouble, especially they are prone to catch diseases. Our pets cannot tell us...