Glossary A–ZLetter O
Open auction
An open auction is an auction in programmatic trading in which any buyer connected to the marketplace can bid for an advertising slot.
There is no prior agreement between seller and buyer. The highest valid bid wins.
For screen networks, the open auction means that free slots can reach many potential buyers without a dedicated sales team. In the sell-side platform, the operator specifies which slots are offered and what floor price applies. An example: a network puts unsold afternoon slots into the open auction, while fixed campaigns run through private arrangements.
In an open auction, the operator does not know beforehand who will buy or which creative will arrive. Clear rules on excluded industries and checking creatives before they play are therefore needed, especially in sensitive locations such as medical practices or schools. The prices achieved fluctuate. Unlike the open auction, a private marketplace limits the group of buyers, and with programmatic guaranteed the price and volume are fixed in advance.