Differences in the Types of Auctions That Take Place Around the World

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.

The Future of Business Advertising

The global economy is naturally all about buying and selling and as such advertising is the lifeblood of the economy. SME’s still tend to adopt more traditional forms of advertising such as directories, newspapers, radio ads etc as they are (generally) cost effective in comparison to their marketing budgets.

However national and global brands with multi million pound A&P budgets are increasingly looking for more creative and innovative ways to promote themselves and stand out in an increasingly competitive market place.

Take the popular US magazine Entertainment Weekly for example, who debuted video advertising in its September 09 edition by placing wafer-thin screens embedded in its pages that promoted CBS TV shows and Pepsi. Gimmick or not, it demonstrated the corporate desire to innovate and appear current.

The traditional advertising model will be around for a long time yet, however the future of advertising clearly lies in digital mediums. Google executive, Nikesh Arora, recently stated “People are shifting their spending dollars more and more to the online world – whether it be direct marketing, advertising, or branding and that follows industrial marketing logic, which is that you have to go where the eyeballs are, where the customers are”. That coupled with the fact that for advertisers digital ad platforms allow accurate performance tracking, which is something offline advertising has always struggled with.

DOOH (Digital Out Of Home) advertising is an up and coming area with some really innovative concepts being developed. French marketing technology firm Quividi are developing digital signage displays that have built in cameras that instantly identify a passer by’s age and gender using a facial recognition system and then delivers a product that it feels is appropriate – think Minority Report!

We already know what a valuable commodity ‘Consumer Data’ is and its link to effective contextualisation of ad messages / message customisation and therefore it is a natural progression that DOOH advertising will follow suit and the worth of digital signage will be as much in its ability to gather data as in its ad revenues.

Taking the idea of digital targeted outdoor advertising even further, Holosonics, a US based technology company has developed something called the audio spotlight, aptly named because it can create a tight, narrow beam of sound that can be controlled with the same precision as a torch onto a small area over 60ft away. The DOOH market has naturally taken to this as it enables advertisers to accurately deliver not only their visual, but now also their audio message into a very targeted area.

So what of the online world?

Facebook:

With over 400 million active users on Facebook, this channel is potentially an advertisers wet dream, particularly as Facebook offers advertisers the opportunity to reach targeted and engaged audiences through Facebook ads. These ads are targeted at users based on their likes and interests rather than their searches and although still in its infancy, businesses are now investigating and trialling campaigns to work out how to effectively leverage Facebook ads into their online spend.

In Game Advertising:

Following on from the initial rush with advertising in ‘virtual worlds’ such as ‘SecondLife’. Advertisers are starting to really understand the benefits of advertising within the gaming community and are being very creative. For example, Zygna (the creator of Farmville) with a current valuation of $4 billion are offering an new approach to in game advertising by incentivizing users to ‘interact with adverts’ by completing brand related tasks such as filing in a form or watching a video, in order to be rewarded with ‘virtual currencies’ to use within their game.

With the global gaming industry achieving over $56 billion in revenues it is fast becoming an important focus for media planners, particularly with the growth of social gaming (i.e. on Facebook). As this area matures, advertisers will be able to utilise in game advertising across different platforms.

Twitter:

Twitter has at last announced the first of its money-making ventures through advertising, with its ‘Promoted Tweets’. Twitter has teemed up with a number of commercial partners such as Disney/Pixar and Starbucks enabling them to place a ‘promoted tweet’ at the top of a ‘trending topic’ on the results page, with the aim to roll ‘promoted tweets’ out across live conversations once they have a better understanding of the users experience and advertiser value.

Twitter are measuring this first phase of ‘promoted tweets’ to ensure that they are useful to visitors (resonance). Whether they ‘resonate’ with users will be measured by whether users interact with them, retweet them etc. Twitter has stated that any ‘Promoted Tweets’ that do not resonate with users will not be allowed to continue. With over 4 billion tweets posted in the first quarter of 2010 alone, this is definitely one to keep an eye on and I will be watching this space with interest.

Mobile:

Mobile ad spend rose by a third to 32% between 2008 and 2009, with brands from the entertainment, media and telecoms sectors spending the largest amounts on the medium, according to the IAB and PricewaterhouseCoopers. The UK spent 36.7m in the UK in 2009 despite a contraction in the advertising market in general.

So what next for mobile advertising? It seem that it’s all about Location, Location, Location with ‘Location Based Advertising’ (LBA). These are mobile adverts which target users based on their GPS location and have the potential to represent anything from a coupon for a coffee shop around the corner from where you are standing or a car dealer that has the same make and model of car as the one you where searching for on Auto Trader last night. Advertisers could even target a banner advert aimed at a certain demographic that would only appear if you were in the vicinity of their business. Although the market seems relatively small at the moment, the potential for growth is massive.

If all of that seems too ‘out there’ for your business, you could always contact Andrew Fischer at Human Headspace – the first man to officially eBay his forehead as advertising space – genius!

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.


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