Please ensure Javascript is enabled for purposes of website accessibility Google plans to move Google AdsSense to a first-price auction.

Google plans to move Google AdsSense to a first-price auction.

Oct 08, 2021 BY ANAHAT DESHPANDE

Google plans to move Google AdsSense to a first-price auction.

An essential update for the Advertisers who use or wish to use Google AdSense. The platform is now being moved to a first-price auction model in the upcoming months. This step will line up AdSense with other ads offerings. This will also empower Google to compete better with other Advertising agencies.

Google officials have explained that the first-price bidding model states that previously on online display ads, space was offered to advertisers in a second–price auction. The winner paid the final amount, which was decided by the amount of the second-highest bidder.

Afterwards many ads selling platforms in the display advertiser platform, including the Google ads manager and Google AdMob, switched their auction technique to the first-price. In this type of bid, the final price reveals the winner of the proposal.

For instance, currently, in Google AdSense bidding, the final amount of each advertisement is 0.001c higher than that compared to the second-place bid. If two brands bid for 5 dollars and the other bid for 6 dollars for a particular ads slot, then the winner bidder ends paying an amount of 5.01 dollars under the first price bidding option. The winning bid will be the total top bid so that the adviser would pay 6 Dollars for the same impression.

Google has already stimulated many of its ads products across the platform to the first-price bid system. Most of the rivals have already shifted to the header bidding system.

This would eventually generate more revenue for the ads publishers; however, Google suggests that the impact of the same will be limited.

Due to the auction atmosphere being dynamic, we cannot determine a specific AdSense publisher would be impacted. Although approximately we can expect the impact of the same on Ads publishers.

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