If you don’t stand for something you will fall for anything.” – Malcolm X
Every day, digital buyers participate in millions and millions of online auctions. Sometimes they do it manually, but oftentimes technology is an enabling part of the process that allows the willing allocation of marketing spend into the ecosystem. While auction types and the specifics of what are actually bought vary dramatically, there is a finite outcome to every single auction. There is a winner and there are losers. Sometimes it’s difficult to determine which is which. Sometimes winners overpay for the right to be present at that moment of consumer opportunity, while losers win by being spared the cost associated with that opportunity that may have never held the real value originally perceived.
In studying a wide array of auctions, what also becomes apparent is that there is a glut of would-be buyers who are simply not operating with a sound business strategy. Whether because of business size and lack of data, or emotional influence that dictates a buying strategy that supersedes sound business investment, there are too many companies guessing what the real worth of the auction should be. In each of these cases, what you ultimately find are buyers setting bids with uncertainty and, even worse, inconsistency.