Supply path optimization (SPO) has been a hot topic lately, as brands recognize the need to take a more active role in order to ensure they are buying high-quality inventory in the most efficient, transparent manner possible. One of the more confusing challenges around SPO involves auction dynamics, or the inner workings of how a particular auction determines the price at which an impression is sold.
Faced with the growing complexity of these auction dynamics, brands are often left in the dark about how to proceed. To succeed in this complex ecosystem, brands need:
- Deep knowledge of how auction dynamics work
- Thoughtful and robust bidding strategies
- Advanced ad partner support and capabilities
- Strategies to analyze current auction performance
Throughout this auction dynamics series, we’ll take a deep dive into each of these four key components of a successful advertising strategy. Let’s begin by laying the foundation and explaining each auction type.
SpotX University and auction dynamics
Different auctions require different bidding approaches, and applying the wrong approach to each auction can negatively affect a brand’s SPO. In the next article, we’ll take a deeper dive into how brands should approach their bidding strategy for both first- and second-price auctions.
You can get access to these ad partner questions now by downloading the entire Video Buyer’s Guide to Auctions here or check out the rest of our auction dynamics series:
- Week 2: Thoughtful and robust bidding strategies
- Week 3: Evaluating ad partner capabilities
- Week 4: Running an auction performance analysis
This article was written by Nick Hoffman, director of global client education at SpotX.