In the VDOOH system, a second price auction is valid in real time, which is used to determine the amount charged for the display on digital billboards or screens. At the same time, the advertiser can set a bid, either for 1 ad impression (PPV from Pay Per View), or for 1000 contacts with an audience (CPT, from English Cost Per Thousand). In this case, contacts with the audience means OTS (Opportunity To See) - the number of persons who were at the location of the digital billboard or screen at the time of the advertising video.
The winner of the auction is the one who offered the highest bid on the PPV or CPT model, while the winner pays the price of the second maximum bid + 1 auction step. The auction is played out within the framework of one minute block at each request of the operator to display advertising.
Currently, the following auction steps are installed in the VDOOH system:
For PPV model:
Outdoor - 0.10 rub.
Indoor - 0.01 rub.
For CPT model - 5 rubles
The owner of the screen set the minimum bid for 1000 contacts in the amount of 50 rubles on his digital board. Three advertisers chose this billboard to display their ads in the same period, time, and interval of the ads and set the following bids:
Advertiser 1 100 rub
Advertiser 2 80 rub
Advertiser 3 60 rub
In the event that 1 request for displaying ads per minute has come from the operator, the advertisement of the first advertiser will be displayed. In this case, the CPT will be 85 rubles (80 rubles + 5 rubles (auction step).
If during the same minute the operator has sent the second request for displaying an advertisement, then the advertisement of the second advertiser will be displayed. In this case, the CPT of such a display will be 65 rubles (the cost of the third advertiser + auction step).
If during the same minute another request came from the owner to display ads on this design, the CPT cost for displaying the third advertiser will be 55 rubles (minimum owner rate + auction increment).
In a situation where Advertiser 1 is the only participant in the auction, regardless of the size of its bid, the CPT for this impression will be 55 rubles.