All studies Advertising

The auction

The ad price is an auction between the budget, the quality, and the chance the person will respond.

Growth Analyst - Tornado Brain · 19 Apr 2026

Before / after

Before
After

Analysis

  • The ad price is an auction between the budget, the quality, and the chance the person will respond.

The problem

  • A clearer ad and a faster page lower the price even in a crowded auction.
  • Raising the budget without improving quality buys the same result at a higher price.
  • Compare the cost per result, not the cost per thousand impressions.

The decision

    The ad price is an auction between the budget, the quality, and the chance the person will respond.

    A clearer ad and a faster page lower the price even in a crowded auction.

    Raising the budget without improving quality buys the same result at a higher price.

    Compare the cost per result, not the cost per thousand impressions.