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Fixed-Price Buying Prevents Marketers From Unlocking The Power Of Their Data | AdExchanger

The misconception of fixed-price buying

Many advertisers use private marketplaces to curate a group of premium publishers, assuming . they will get priority access to the best inventory. This is not the case anymore. Collapsing publisher waterfalls and competition through header bidding may cause fixed-price deals to compete alongside open-market bids, leaving price and yield optimization to sway the publisher’s decision to serve one ad over another.

The result is that advertisers overpay for a group of unequivocal impressions. Just as a nickel and a quarter are not worth the same just because they are both silver and round, nor are a single publisher’s ad impressions. Most publishers make their best inventory available for real-time bidding via the header, diminishing the power of fixed-price bundles and increasing the value of the price-discoverable open market.

For example, I know of an agency trading desk that tested the performance of fixed-price buys against open-market buys, with a whitelist. The CPM for the fixed-price campaign was nearly twice as expensive as the open-market campaign CPM. Ultimately, the open-market campaign delivered impressions within the client’s target demographic for 84% less than the cost of the fixed-price campaign, driving the most cost-effective results.

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Fixed-Price Buying Prevents Marketers From Unlocking The Power Of Their Data | AdExchanger.

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