Hernan VazquezFounder and CEO, Rapid Scale Framework · Creator of The Rapid Scale Framework, Author of Low Ticket Profits

Democratising the way of advertising

4 Aug 2023 · 1 min

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1:00

In this segment, the speaker explains the fundamentals of how most digital advertising platforms operate on a bid‑based auction system, where advertisers must outbid competitors to secure impressions and clicks. The discussion highlights that the cost per mille (CPM) is driven by supply and demand: when many advertisers are active, CPMs rise, but if competitors reduce or pause their marketing spend, the reduced competition leads to lower CPMs despite the same audience size. This dynamic illustrates a pathway toward democratizing advertising by showing how market forces directly affect ad pricing and accessibility.

Chapters

When you talk about democratizing kind of, you know, the way advertising works, most of these digital platforms, they work on a bid basis, right? So basically they work on an offer and demand kind of basis, right? So in order for you to get an impression or get an eyeball on an ad, you need to bid higher than the other guy, right? Higher than the other person that's bidding and that's competing for that attention, for those eyeballs, for those clicks. Without getting too much in the weeds, That means that if, let's say, if you're paying $100 to get your ad shown 100 times, right? When everyone else retrieves or pulls, turns off their marketing, what happens is that the CPMs, which is the cost to show your ads on these platforms, it tends to go down. There's less competition for the same amount of eyeballs. There's less competition for the same amount of clicks and impressions because the clicks are there. People still own their Facebook account.