Why is it essential to have both guarantees and price discovery in digital advertising?

Having both guarantees and price discovery in digital advertising is crucial for maximizing advertising return on investment. Guarantees provide advertisers with assurance that their ad placements will meet certain performance criteria, such as impressions or clicks, which helps to reduce the risk associated with ad spend. On the other hand, price discovery allows advertisers to understand the market value of ad inventory, enabling them to make informed decisions about their bids and budget allocations.

When advertisers are able to leverage pricing information effectively and have guarantees in place, they can better optimize their campaigns to achieve their desired outcomes, such as increased brand awareness or sales. This optimal mix helps ensure that their advertising dollars are spent efficiently, leading to a better return on investment.

The other options, while relevant to various aspects of advertising, do not directly address the core objective of maximizing the return on investment in the context of guarantees and price discovery.