hey folks,
this is a kind of a noob question I guess. How does aserver work on the most basic level on the example of youtube?
my assumptions:
-- generally the goal of the adserver is to maximize revenue of the traffic source while keeping entry barriers low for new advertisers
-- to archieve this, you only get more traffic when you bid higher / pay more per view
-- however, there is a ammount of traffic reserved for beginners, which is cheaper but is limited in terms of volume
-- the idea of that is to make it easier for new advertiser to get started. Thus they get a discount as long as they don't scale
-- generally speaking, on self serve platforms, traffic gets more expensive the more you buy. It gets a lot more expensive, like several multiples, not just a little bit
-- that's the reason why ROI drops so fast when scaling - in my case the CPA doubled when scaling from 100€ to 400€ on youtube on a 5million audience
-- advertiser for the same audience get the impressions of one unique visitor in the order of the bid. So the 1st bidder gets the 1st page impression of a unique user, 2nd bidder gets the next impression generated by the same user and so on
-- having the highest bid on a platform means you can push out other advertisers
-- traffic gets more expensive per view the more it is targetted. If audience A is an element of the larger audience ABC, one impression from A will always be more or equally expensive than from ABC
-- the budget is not a factor, you don't get more priority on the adserver if you put in 5.000€/day budget even your bid only delivers 100€/day
-- a bidtable roughly looks like that: http://mo.mathematik.uni-stuttgart.d...e1193/img6.png (y = cost per impression, x = traffic volume you buy) - traffic gets more expensive the more you buy and the curve of cost per impression is not linear but steeper
-- it should be possible to get cheaper traffic by using multiple accounts
-- traffic quality does not increase with a higher bid, the higher bid only increases volume
I'm specifically referring to youtube video ads.
Can somebody say which of these assumptions are right and which are wrong and why?
Cheers
Steve
*bump*
This is probably a question best directed at Google. They have teams specialised in talking to bigger spend advertisers - if you can convince them you're one of those people, you can actually sit down in a room with one of their reps and grill them. It's an extremely useful experience!
I know that various ad servers within Google work in various ways. Some of them are using extremely clever stuff - machine learning and AI-based algorithms - to optimise the ads both for buyers and the big G themselves.
Unfortunately, given that YouTube is a bit of a new frontier for affiliate stuff, I'm not sure anyone on STM will be able to give you many details yet. I know that I haven't figured things out over there enough to be able to give concrete answers yet!