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How Video Advertisers Can Optimize Google's Auction Model
Google advertising uses an auction model comprised of sealed bids, meaning that brands bidding on advertising inventory don’t know how much other brands have bid on that same inventory. This model also consists of a welfare payout from winners to losers, and a bidder matching component to ensure that participants feel the system is balanced, trustworthy and winnable. The objective of this economic dynamic is to encourage fairness and credibility while limiting unfair advantages in balance with a brand's own profit yields. Advertisers have many ways to win within this framework, provided they adapt performance models, not unlike how investment banks function in securities.
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