In the programmatic method of selling display advertising, how is pricing set?
Select one option.
- The price of each impression is fixed and agreed upon.
- The price of each impression is guaranteed before the campaign.
- The price of each impression can vary significantly in a real time bidding auction.
- The price of each impression remains constant throughout the campaign.
Explanation: The correct answer is The price of each impression can vary significantly in a real-time bidding auction. In the programmatic method of selling display advertising, pricing is determined through real-time bidding auctions where advertisers bid on ad impressions. Ad inventory is made available for auction, and advertisers place bids based on their willingness to pay for each impression. The auction process occurs in real time, allowing advertisers to adjust their bids dynamically based on factors such as audience targeting, ad placement, and campaign objectives. As a result, the price of each impression can vary significantly depending on the competitiveness of the auction and the demand for ad inventory. Advertisers with higher bids are more likely to win ad placements and have their ads displayed to the target audience. This dynamic pricing model enables advertisers to optimize their ad spend and achieve their campaign goals efficiently. Therefore, understanding how pricing is set in the programmatic method of selling display advertising is essential for advertisers to effectively navigate the digital advertising landscape and maximize the performance of their campaigns on the Microsoft Advertising Native & Display platform.