Google moves AdSense to first-price auction in a bid to improve transparency

New Ideas in MarketingEssential news for marketers, summarised by YouGov
October 27, 2021, 12:00 PM GMT+0

AdSense for Content, AdSense for Video, and AdSense for Games will be affected by the shift.

Google announced that it will switch AdSense to a first-price auction from the second-price, with the highest bidder receiving the slot. The first-price auction model will allow publishers and advertisers to see the winning bid and streamline the buying process.

This will aid Google in optimising "auction dynamics" across AdSense, Ad Manager, and AdMob. The author contends the shift is to help Google create a transparent auction environment for publishers and provide a benchmark for advertisers’ bidding strategy.

Google anticipates the shift to benefit rather than hurt publishers' ad revenue. However, executives in the industry are doubtful as to how Google will address the lack of transparency in AdSense for Search, as it isn’t being moved to a first-price auction.

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