What Google’s Switch to First-Price Auctions Means for Publishers

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The second-price auction played a starring role in making programmatic a $48 billion industry, but Google’s first-price switch means the model could be facing its final curtain call. After years of issues caused by header bidding and sequential auctions, Google has moved away from second-price auctions to increase transparency.

Here is what publishers need to know about Google’s switch to first-price auctions and how it impacts their business.

From Second to First: Google Sets a New Tone

Although second price — which sees winners pay the price of the second highest bid, plus one cent — has long powered programmatic, its utility has steadily declined.



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