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by jhenkens 2069 days ago
2nd price auctions have been dead for 2+ years due to header bidding. For anything in which Google has to compete against other SSPs or DSPs, I'd imagine it is the same. If Google owns the content, such that they are the single party SSP/DSP, and header bidding is not possible, then I suppose 2nd price could come in.
1 comments
thu2111 2069 days ago
What is header bidding? I also thought Vickery auctions were still in use.
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dan-robertson 2069 days ago
I think it’s a way for publishers to simultaneously auction the same bit of space in multiple exchanges. I guess that this means they have to use first price auctions, though I don’t have a super great idea as to why.
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musikele 2068 days ago
I wrote an article on the subject: https://michelenasti.com/2019/10/21/how-internet-ads-work.ht... You may find the answer in the last paragraph. Basically, the browser will ask multiple bidders for an ad, and then an auction is performed in the browser. The result of this first auction may be then sent to google to see if there's a better offer from them. It's called "header bidding" because... in origin.. this stuff was done in the <head> part of the page.
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thu2111 2068 days ago
Thanks. That's a very well written article, I enjoyed learning from it.

The auction is performed in the browser? No wonder the web feels pokey these days.

I thought at first this must be due to the privacy requirements around cookies, only the browser can coordinate the different parties because none of them will be sent all the cookies needed to run a complete auction themselves. But it seems like it's really more some kind of hack around a limited (for business reasons) Google API.

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