How a bidding platform for advertising won't work.

TommyCarey Level X³

October 15, 2016, 6:30 pm

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How a bidding platform for advertising won't work.

When I say a bidding platform for selecting and paying for advertising spots won't work, I'm not referring to adwords or Yahoo!/Bing advertising.

I'm currently using a small start up advertising company and they have some decent sites listed as their publishers, but they system is severely flawed. I don't really want to post the system here, because it's in the early stages and I don't want to post bad PR for it.

The system I'm talking about is one that only rewards the highest bidder. I placed a banner on a website and was the highest bidder in the US, Europe, and everywhere else in the world. After a few days I got an email from the platform to let me know that I have been outbid and my ad was removed. I literally said "WTF?!?!?! I just funded my account with $75 and now I have to watch this sh*t every day?!?!?!?!" Yeah, if you're like me you want to pay for an ad placement and let it run it's course. You don't want it to be loaded and then you get an email saying you're ad has been removed.

So after I raised my bid I was the top bidder again. Of course I could set a high amount that I want to bid, but I don't exactly trust any new advertising system. I don't trust them right off the bat because they could be sending me automated notifications that I've been outbid just so they can get me to come in and increase my bid so they make more money, but that may not be true.

A system like this will not work because you're only focusing on the one website, person or company that has the highest bid. You're basically putting everyone in competition to get that one spot for their banner ad and in the end you'll just create frustration and people will leave. I'm actually about to stop using the system because my bids are almost double of what I started with

Now if there was some kind of rotation system in place that allowed me to bid and get a percentage of the views, I'd be happy with that. The only thing is that they system would have to set it up so that the top bidder can only get a maximum of 75% of the views just so that the smaller guys can get a banner up and see the results. This will also increase the revenue of the company because people can bid low to test a out an ad spot and if they like it they will increase to take that 75% placement.

This is all just me theorizing about a banner advertising platform, so it could be completely wrong lol

If you want to know the platform just PM me and I'll let you know.

Like what you read here? Follow me
https://www.seocheckout.com/user/Razzy

Thanks,

Razzy

Comments

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CryptoGuru

This is an interesting way to do business. Its terrible for the person buying the ads, but its great for the person collecting the bids. I respect that fact that you wouldn't call out the name just incase they grow and can develop pass this insane flaw. I hope they decide to change this because its a bad idea in my opinion. I feel bad that you funded $75 on that site will you be able to recoup your funds? The traffic flow must be really high for them to be able to generate this kind of market. Hey i just wish i was running this great platform that everyone wanting to get into bidding wars over. I think your theory is true bots control the system. Anything that involves money can breed greed into anyone. If someone wanted they could make people raise their bids all the time and collect bigger revenue, but man this site must be bringing sales or good traffic for people to want to throw money into it. Hey i hope it works for you sometimes getting in at the early stages can have many advantages. If this site becomes very popular your face will stick out. Thanks for sharing!

8 years ago

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TommyCarey

Yeah, I don't want to bash them just yet because they're new. I know that when I launch a website or service it's not always 100% flawless, so I don't expect other people to be perfect right out of the gates

I really hope it's not bots that are upping the bids. The good thing is that I can check who is beating me for the spot because I can just go to the website and see where the banner is aimed. Click the banner and then I find out exactly who is paying for the ads

The platform itself doesn't get a ton of traffic I think. It's the websites that are listed as publishers that get the traffic in which I'm trying to profit from. I added $75 because I was targeting 2 different ads and I was going to put $45 in to one and $30 in to another. I didn't split it evenly because one gets more traffic than the other and I wanted to see if I could capitalize on the larger traffic source first.

I haven't seen many conversions from this traffic. I think I've gotten around 250 unique clicks and one conversion out of it. And if you've read any of my previous posts you know that I'm not a novice in the marketing category so my banners are set up so that people know exactly what they're getting into before they click

So getting 250+ clicks and only one sale doesn't seem right to me. Either they are fake clicks or the clicks are only coming from India. I'm targeting the entire world, but my main target is the USA and Europe. So something doesn't make sense just yet.

8 years ago

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CryptoGuru

Thats insane! they can charge this much and not have a ton of traffic being converted over. If you start to do well please let us know which site this is.

8 years ago

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hitmeasap

Well.. Just imagine what would happen if seocheckout would have decreased the featured slots, to let's say 5 slots and make people bidding for them. - With a starting price of $575. - I bet people would bid like crazy.

And fortunately, that won't happen on seocheckout, but I feel sorry for people who run businesses like this. It's a poor and flawed system and people using things like this are usually ending up with nothing but holes in their pockets. - Sad but true.

That being said, you've mentioned several times that they are new and all, so perhaps things will be better in the near future. However, to me, it sounds like you're throwing money in a pond.

Btw, wouldn't that be a cool thing to do. Have 1 featured slot on Seocheckout per month/week or even per day, open for bids?

(I won't take more than 5% commission for the idea. ;))

8 years ago

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Lynne

LOL that would be a really cool idea actually Andre, since I have seen so many people saying they want a featured spot but they can never get one because they are always booked up by regular advertisers.

I get that the regular advertisers get preference, this is fair but I also see that other people lose out. It is a tough one, but your suggestion would make it a regular open spot available for bidding...

8 years ago

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hitmeasap

Haha yeah, well, I wasn't really serious when I wrote what I did, but it's actually a decent idea. I thought of it a bit after I wrote it and something like that would certainly make the "playfield" a bit more "fair". At least other people would have a more fair chance of grabbing one of those featured slots and that would most likely be appreciated by everyone who's waiting for a shot. - Without the regular featured slot users being affected.

8 years ago

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Lynne

I don't like this at all. I would have been very upset if I were in your position. I guess bidding for the spot is ok since everyone knows where you stand. However if you have won the bid and paid over $75 then you should be able to stay there for a specified period of time.

I would have wanted to get a refund for the remainder of my $75 but I suppose they probably have it in their terms somewhere in small print that they don't do refunds under these circumstances.

This type of system may be all fun and games and a nice income earner for the advertising website but for the advertisers it is a time and money wasting venture that most likely leaves most of them unhappy and feeling cheated.

8 years ago

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Cristian

So what exactly is wrong with Google Adwords if you are looking for alternative advertising platforms? I know trying different stuff can directly increase your conversion rates and maybe Adwords is indeed pretty expensive, but I believe with proper optimization you can reach a good stage of conversion.

Unless the things you want to advertise are forbidden with Adwords, if that is the case I totally understand why you would look for different ad platforms away from the mainstream ones. Maybe trying offering direct banner proposals to websites you think may fit your purposes, skipping ad platforms altogether.

8 years ago

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Barida

It's good to know about this considering the fact that some rivals will always want to outbid you on popular websites that you run your ads on. The plan is perfect for someone like me as well to get better at advertising my products and services.

7 years ago

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