{"id":4285,"date":"2021-09-21T11:02:23","date_gmt":"2021-09-21T11:02:23","guid":{"rendered":"https:\/\/www.adspyglass.com\/blog\/glossary-second-price-auction\/"},"modified":"2021-09-28T15:14:56","modified_gmt":"2021-09-28T15:14:56","slug":"second-price-auction","status":"publish","type":"post","link":"https:\/\/www.adspyglass.com\/blog\/second-price-auction\/","title":{"rendered":"Second-Price Auction"},"content":{"rendered":"<p><span>Basically, a second-price auction means that the highest bidder in an auction pays one cent higher than the second-highest bidder. For example, suppose two advertisers bid for a slot on Google AdSense, the highest bidder wins the auction but will pay a lower amount than his bid price. If bidder A bids $100 and B bids $150, bidder B will win the auction. However, with the second-price auction, Bidder B will pay $100.01, which is a cent higher than bidder A&#8217;s bid price.&nbsp;<\/span><\/p>\n<p><span>By the following, the price bidder B pays for an advertiser-cost-per-click is lower than the cost-per-click (CPC) they bid in the auction.&nbsp;<\/span><\/p>\n<p><span>For several years, the second-price auction has been the industry standard. However, the advent of real-time bidding (RTB) publishers could allow multiple ad exchanges to bid on their inventory all at once. This led to complexities and operational inefficiencies within second-party auctions. Another drawback for this auction type is that it usually involves hidden fees taken by ad exchanges.&nbsp;<\/span><\/p>\n<h1>&nbsp;Segment<\/h1>\n","protected":false},"excerpt":{"rendered":"<p>Basically, a second-price auction means that the highest bidder in an auction pays one cent higher than the second-highest bidder. For example, suppose two advertisers bid for a slot on Google AdSense, the highest bidder wins the auction but will pay a lower amount than his bid price. If bidder A bids $100 and B [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[93,112],"tags":[123,1100,1099,1101],"class_list":["post-4285","post","type-post","status-publish","format-standard","hentry","category-glossary","category-s","tag-adspyglass-glossary","tag-second-price-auction-definition","tag-second-price-auction-term","tag-what-is-second-price-auction"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Second-Price Auction<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.adspyglass.com\/blog\/second-price-auction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Second-Price Auction\" \/>\n<meta property=\"og:description\" content=\"Basically, a second-price auction means that the highest bidder in an auction pays one cent higher than the second-highest bidder. 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