Aug 03, 2022
In Welcome to the Forum
At least that's the thought. Because auctions take place one after the other, it is possible that a higher bid from a later auction loses to a lower bid in the first auction. This is also the reason why I indicated earlier in this article that it is important that the auction(s) take place at the same time without priority or restrictions. Also read: The benefits of header bidding & the consequences for advertisers Consecutive auctions Let's make the above more concrete in an example. A number of different advertisers want to bid on an available advertising space according to the second pricing principle: Auction 1 Anton offers 15 CPM (Cost-Per-Mile, cost per 1,000 impressions) Bert offers 12 CPM Auction 2 Christine offers 20 CPM David offers 7 CPM Auction 3 Emma offers 4 CPM Frank offers 3 CPM Due to a combination job function email list of several auctions that take place one after the other and the second pricing model, two things now happen: The publisher sells the advertising space cheaper than what an advertiser would be willing to pay for it. The advertiser who is willing to pay more (Christine) was only able to bid in auction 2. Because the advertising space in auction 1 has already been sold, the follow-up auctions will no longer be conducted. Publishers switch to header bidding Partly because of the above disadvantage, many publishers have switched to header bidding . This is because header bidding does not use second price, but (increasingly more often) first price. Moreover, the auction(s) take place simultaneously, so that the highest bid in principle wins the advertising space. Because auctions take place simultaneously and are increasingly settled via the first pricing model, publishers can sell their advertising space at higher prices. What is header bidding? Header bidding is a piece of code that is implemented in the header of websites.