From 30,000 feet up, a media auction is simply a straight exchange of goods/services in return for advertising credits.
Now to come in a little closer to ground, a local business will “pledge” items into your online auction via contract. “Pledge” means their items DO NOT leave their location.
Approximately 4-5 weeks prior to the “live” online auction, ”live” means the time frame in which the items will be available for bid, your media company will begin advertising the auction to your audience. This is subjective to your media type: Radio, Internet, Newsprint, Television, Magazine, etc.
As auction item contracts are received, these items are entered into an easy administration backend of your auction site. These items will include: Item name, description, photo, etc., capturing the essence and detials of the item up for auction.
Your auction site will be viewable approximately 3 weeks prior to it going “live” to increase market awareness and excitement and begin the registration process from your market bidders. This will also have an effect on additional pledges into your auction from competing companies.
Once the auction goes “live”, registered bidders will have the option to bid on items that they are interested in “winning”. “Winning” means highest bidder at the close of the auction bidding period. Once the auction items are won, the credit cards are processed to complete the sale. Upon confirmation, a certificate is automatically generated for that auction item to the winning bidder via email to redeem their product from the advertiser who pledged it.
Upon that confirmation, your media company collects and keeps that revenue. In return, your media company will extend advertising credits in the amount of the retail value of the good/services sold in your auction to that advertiser. Since this is a consignment style exchange, your media company will only extend the credits for the items that are sold in your auction.