Auction

What is a yield-ranked optimizing auction?
A yield-ranked optimizing auction is a system of serving the most relevant and lucrative ads within a publisher’s inventory of advertisers, producing stronger revenue streams for publishers and more qualified consumers for advertisers. The ad server considers both the max Cost-Per-Click (CPC) as well as the Click-Through Rate (CTR) in determining order and placement of ads. The auction places more importance on the relevance and potential revenue of an ad rather than the highest bidder.

How does it all work?
To determine the best-suited ad for any placement, the max CPC is multiplied by the CTR to come up with a rank based on estimated yield. Based on this rank, ads are sorted and displayed on a website. Ads are discounted so that the advertiser at the top of the order pays only slightly more than the next advertiser below it. To increase its rank, an advertiser needs to increase their yield for publishers. This can be achieved two ways: (1) making changes that improve the CTR or (2) increasing the Max CPC.

Why it works for you:

• Based on CTR, more relevant ads are served, providing a better user experience
• Based on CPC, higher-yield ads are served, providing a stronger revenue stream
• As the auction grows, the CPCs increase
• Leveling the playing field – big and small advertisers are able to compete equally
• Naturally monitors the quality of the ads being served.