Google announces first price auction method for ''Ad Manager''
Launched in June 2018, "Ad Manager" worked on second price auction method until now wherein the highest bidder bought the product for the second-highest bid rather than on his own highest.
In a bid to create a fair and transparent market for its partners, Google is incorporating the first price auction method on its online advertisement service brand "Ad Manager", specifically concerning ad sales for display and video inventory products. Launched in June 2018, "Ad Manager" worked on second price auction method until now wherein the highest bidder bought the product for the second-highest bid rather than on his own highest.
"With this change, the buyer that wins the auction pays the price they bid. By simplifying our auction in `Ad Manager`, we can help make it easier for publishers and app developers to manage and get fair value for their inventory," Sam Cox, Group Product Manager, Ad Manager, Google wrote in a blog-post on Wednesday.
Given that both buyers and sellers would need time to alter their strategies, the transition would require time, and the company has, hence, decided to wait for a few months before starting to test the change. "During this time, publishers and app developers will need to rethink how they use price floors, and technology partners will need to adjust how they bid for the `Ad Manager Inventory`," Cox said.
The change, however, would not impact auctions for ads on Google Search, AdSense for Search, YouTube and other Google properties.
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