Low CPM Rates Coincides With Use of Right Media Yield Manager Platform
Over the last few months we have been doing a lot of work with advertising networks. I have noticed that with most CPM networks currently in the marketplace they provide quite low rates, apart from a few. With regards to these low rate networks I have noticed a key characteristic that most use Yield Manager from Right Media. Is this just a coincidence or does Right Media only provide their platform to remnant and low paying CPM ad networks?
2 Comments
Actually, there are a number of reasons for this. One is that the Right Media Exchange is a much more competitive marketplace, and also the pricing model for inventory is biased towards the advertiser because most advertisers and networks run ad deals as “dynamic CPM” campaigns – which is a CPM ceiling, and RMX does a second-price (Vickrey) auction to determine who wins each impression. The winning bidder pays 2nd highest price + 0.01 for the winning ad impression, up to their ceiling bid price. Thus all the surplus is being captured by the advertiser instead of the publisher. We work with over 100 ad networks both on the RMX platform and outside of it, and we have a lot of insights into CPMs. CPMs are lower overall, but for quality traffic and good ad placements, good CPMs are achievable.
Additionally, Im very interested to hear more about your ad network and what results your network provides. If you can email us or just drop a comment in, that would be great.