In the direct or guaranteed method of selling display advertising, how is pricing set?
Select one option.
- The price varies by impression.
- The price is fixed and agreed upon.
- The price is set in real time.
- The price is set in an auction.
Explanation: In the direct or guaranteed method of selling display advertising, pricing is set by fixed and agreed-upon rates. This option is correct because in this method, advertisers and publishers negotiate and agree upon pricing terms directly, typically based on factors such as ad placement, ad format, targeting options, and duration of the campaign. Unlike other methods such as real-time bidding (RTB), where pricing is determined dynamically through auctions, the direct or guaranteed method involves pre-negotiated rates that are fixed and agreed upon before the campaign is launched. This fixed pricing structure provides advertisers with greater predictability and control over their advertising costs, allowing them to budget effectively and plan their campaigns with confidence. Additionally, fixed pricing simplifies the buying process and eliminates the uncertainty associated with auction-based pricing models, making it particularly suitable for advertisers seeking premium ad placements and guaranteed inventory within the Microsoft Advertising Native & Display context. Therefore, understanding how pricing is set in the direct or guaranteed method of selling display advertising is essential for advertisers to effectively plan and execute their advertising campaigns and achieve their marketing objectives.