17 September 2010

Advertisers Name Their Own Price

AdAge reports that "Brand.net is releasing a new buying platform...that would allow advertisers to purchase page views at specific prices ahead of time, a specialized form of hedging. The tool forecasts what prices for online ads will be at a future date within a particular category, such as entertainment or automobiles." 

FYI: Advertisers usually buy advertising space on webpages based on a demographic or product category, such as entertainment. They could purchase space for their ad on webpages based on demographics, such as women between the ages of 18 and 25. In the past, they made these purchases based on the posted price by the webpage, which could fluctuate (think of purchasing airline tickets). This program allows them the less expensive price. This is the result of competition among websites.

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