how does an ad network work?

Ye' old general discussion board. Basically, for everything that isn't covered elsewhere. Come here to shoot the breeze, shoot your mouth off, or whatever suits your fancy.
This forum is not for asking programming related questions.

Moderator: General Moderators

Post Reply
m2babaey
Forum Contributor
Posts: 364
Joined: Sun May 20, 2007 9:26 am

how does an ad network work?

Post by m2babaey »

Hi
I am looking through an adcenter website but some issues has confused me. do you have any idea? ( I know you may say ask themselves but if you come up with any ideas let me know)
Advertisers bid so when someone searches ads, their result will get a higher rank. now my question is that:
Will their bidding affect their result for inline ads and ordinary text ads? if so how? and if not what is the amount deducted from their balance?
2.there is an auto bid feature that enables advertisers to have their bid increased 1 cent automatically if their competitor bids higher. Now what will happen if 2 competitor decide to use the autobid feature?
Thanks
User avatar
Ambush Commander
DevNet Master
Posts: 3698
Joined: Mon Oct 25, 2004 9:29 pm
Location: New Jersey, US

Post by Ambush Commander »

Advertisers don't bid for specific spots, rather, they bid for probabilities of their ads showing up.

For example, suppose two advertisers are bidding for time. They both bid $50. They get AMOUNT BID / TOTAL BIDS probability of their ads showing up, i.e. 50% chance for either ad to show up. Suppose the first advertiser doubles his bid, the probability changes to 66%-33%.

Obviously, it's a bit more complicated than that due to weighted keywords, but its the general idea.
Post Reply