With the purpose of simplifying programmatic buying, Google Advertisement Manager will start transitioning publisher supply to a first price auction file format.
As the market head in programmatic, Google Ad Manager’ s ( previously DoubleClick ) move may have broad implications for the industry, that can be pushing toward first price sales.
Why you should care
In a first price public sale, buyers pay the actual price these people bid. Whereas in a second cost auction, the winner pays the total amount bid by the second place rival. The second price auction format at first formed the foundation of programmatic advertisement buying, which was primarily a way just for publishers to fulfill their remnant supply.
Programmatic has given that become increasingly complex as the sector and ad tech ecosystem has exploded more sophisticated. That complexity provides meant it’ s harder in order to for both publishers and marketers to properly value inventory.
Google is not the first to shift to some first price auction, but its place in the market means it will make the greatest wave throughout the ecosystem as sell-side and demand-side platforms respond to the particular change.
“ Because the change from second to first cost will require both buyers and retailers to make changes in their programmatic techniques, we’ ll give everyone time for you to prepare over the next few months prior to we start testing. During this time, marketers and app developers will need to re-think how they use price floors plus technology partners will need to adjust the way they bid for Google Ad Supervisor Inventory, ” Google said.
In a first price public sale, all programmatic buyers will contend in one auction, alongside direct-sold marketers. Bids will not be shared with other customers before the auction or set the cost for another buyer.
Read more about the news
- The particular move will affect display plus video inventory sold through Search engines Ad Manager only. It does not influence auctions for Search, YouTube, AdSense for Search or other Search engines property inventory. Display & Video 360 advertisers don’ t have to take any kind of action.
- Google mentioned it will start to transition publisher supply to the unified first price design in the coming month and expects the particular transition to complete by year-end.
- Programmatic is expected to be aware of 86 percent of US digital screen media buying by 2020, based on eMarketer.
This story first appeared on MarTech Today. For more on marketing technologies, click here.
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