Dynamic Pricing Model for Behavioral Targeting

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Online advertising network Turn announced last week the release of a dynamic pricing solution for behaviorally targeted advertising.

Most networks currently price behavioral offerings as a premium above a fixed CPM (cost per thousand impressions) price for standard inventory on the promise of performance. The problem is that this method does not account for recency of behavior or relevance of users to the advertisers message. Turn's solution prices inventory based on value to the advertiser and the actual measureable performance of the campaign.

"Our dynamic pricing model is an alternative to how advertisers are purchasing behavioral inventory today. In this world, offerings aggregate all users in the behavioral segment and every impression is assumed to have equal value to the advertiser. In reality, all users are not equal and pricing should reflect that," comments Dominic Bennett, vice president of engineering at Turn.

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