Proprietary Reverse Auction Model Benefits Both Advertisers and Publishers
LOS ANGELES – Bid4Spots.com, the only live online reverse auction marketplace for buying and selling last minute media, announced the launch of the Online Display Media Marketplace. The new marketplace follows on the extreme success of the company’s Online Radio Media Marketplace, which launched in 2004 and has had the participation of 2/3 of all rated stations in the U.S.
Beginning today, publishers and advertisers can sign up for the first weekly auction, to be held live online on January 6, 2011 from 8 AM until 12 PM PST. Buyers (Advertisers) set a maximum price that they will pay per thousand impressions (CPM). The buyer then sets their campaign parameters, such as target market, audience and category, which help determine the number of sellers (Publishers) that will be invited to participate. When the auction begins, the invited sellers start aggressively bidding to monetize their unsold inventory for the following week. Since there are multiple sellers competing against each other, they continue to lower their prices in order to win the buyer’s campaign dollars.
Unlike a forward auction, in Bid4Spots’ reverse auctions the sellers (Publishers) do the bidding, and the lowest price wins and there is only one buyer (Advertiser) and multiple sellers (Publishers). Publisher rates are never disclosed. Bid4Spots maintains both publishers’ brand and rate integrity, enabling them to sell off excess inventory, maximizing profit, without affecting direct buys.
“We differentiate ourselves by being the only live online reverse auction for last minute media which gives publishers control over their inventory,” said Bid4Spots Chairman and CEO Dave Newmark. “Bid4Spots limits the buys only to the next week, respecting that publishers wish to use qualitative aspects of their story when making regular sales farther out than the following week.”
Bid4Spots also enables “Media Buying for the Masses,” in that the live, reverse auction generates tremendous value with no ad-buying experience required.
In addition, Bid4Spots has developed a proprietary bidding tool called the PowerBidder. While publishers are competing downward in the overall auction, impression inventory is actually being awarded to those from whom the most revenue can be generated. Thus while publishers are bidding against one another downward, it’s essentially a forward (upward) auction amongst the advertisers because only the advertisers who set the most generous terms or budgets get the inventory. In this way, publishers know that their CPMs will automatically be pushed up to the highest-level possible.
About Bid4Spots
Founded in 2004 by advertising veteran Dave Newmark, Bid4Spots is the ONLY live online reverse auction marketplace for buying and selling last minute media for the following week. Through a proprietary reverse auction model, Bid4Spots enables media to sell unsold ad inventory to advertisers without compromising rate or brand integrity, and allows advertisers access to inventory at a tremendous value. For more info please call 866-979-3654 or visit http://www.bid4spots.com for an online demo.
