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Right Media Launches Online Ad Auction

Just how important is ad space? Evidently important enough to have competing companies to market these ad spaces. Popular ad networks such as Yahoo Publisher Network and ValueClick have another competitor on the market: Right Media. As Elinor Mills writes for (reference below for link), what sets Right Media apart from other ad networking companies is how it operates – by allowing ad spaces to be auctioned off to the highest bidder rather than Yahoo and ValueClick’s set prices. This would put the advertising market more in the customers’ hands since they can bid how much they feel the ad space is worth instead of following other companies set guidelines.
While there are various constraints with the idea of an ad space auction (e.g. some companies prefer their ad space featured only on certain websites) allowing companies to active put a price on how much they feel the space is worth will allow the market to move freely rather than have companies depend on a first-come-first-serve basis or through connections to secure an ad space. This freedom allows advertisers to put invisible values on their adverts as well as locations where their adverts can be posted. It also creates a game with fellow competitors by guessing what they in turn will bid on the ad space.
With this ability to bid on the auction space, advertisers can bid their valuations on the spacing and allow the market to clear accordingly. With the competition on the internet to secure good ad spots in popular sites, companies will have to bid what they feel is the true worth of the advertising position due to other competitors looking for the same spot. Although this could potentially hurt smaller companies who do not have as much funds as large to commercialize in largely popular sites, it does preserve the integrity of popular sites since no-name companies will be less likely to take up space that can be used to promote larger or more established companies. All in all, this will clear up ad-work on the internet and not only help the company, but the regular internet browser who will have a higher quality of company choices that could potentially provide better goods.


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November 2012