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Blog Posts (12)
- How does Header Bidding work?
- What is Prebid?
- First-price auctions and second-price auctions in Real Time Bidding
There are two primary types of auctions in Real Time Bidding (RTB) and programmatic advertising. First-price auctions and Second-price auctions. First-price auctions and second-price auctions are two distinct types of auctions that differ in how the final price paid by the highest bidder is determined. Here's a brief overview of each: First-price auction: In a first-price auction, bidders submit sealed bids, and the highest bidder wins the auction. The winner then pays the exact amount of their bid. Since bidders are unaware of what others are bidding, they must strategize and balance their desire to win the auction against the risk of overpaying for the item. This might lead to bidders submitting lower bids than their true valuation to avoid overpaying, a strategy known as bid shading. Second-price auction: In a second-price auction, also known as a Vickrey auction, bidders also submit sealed bids, and the highest bidder wins the auction. However, the winner pays the amount of the second-highest bid rather than their own bid. This auction format encourages bidders to submit bids that reflect their true valuation of the item, as they only pay the price of the next highest bid if they win. This mechanism is designed to reduce the winner's curse, which occurs when the winner overpays for an item in a first-price auction. In summary, the main difference between first-price and second-price auctions is the way the final price is determined. In a first-price auction, the winner pays their own bid, while in a second-price auction, the winner pays the second-highest bid. This difference in pricing mechanisms affects bidders' strategies and the overall efficiency of the auctions.
Other Pages (11)
- Programmatic Advertising | Emerse
Precision meets scale with programmatic advertising Move past the ordinary and unlock the full potential of digital media with our proven solutions. For more than 15 years we have developed and improved methods, technology and strategies for successful digital advertising. We've had the opportunity to take part in delivering projects including US and European digital election advertising campaigns and we've worked for some of the most incredible and fastest growing brands. We believe in constant improvement fuelled by data and advances in technology. Applying the full capabilities of science and technology on marketing to make it perform at its fullest potential. Contact us today to learn more > A history of successful customer partnerships Clients SOME OF OUR CUSTOMERS Delivering next generation advertising by pushing boundaries of technology and data. TECHNOLOGY We offer a set of unique and well-proven technology solutions including our Demand Side Platform (DSP) for programmatic media buying and our Emerse Labs Machine Learning Platform for A/B-testing and analytics. Available for both our full-service and self-service customers. Learn more SERVICES Beyond platform access, we offer a fully managed service including operations, analytics and delivery of any scale of digital advertising project. Results are driven by ideas, execution, experiments, follow-up and analytics. We help our customers achieve success by managing this process for them. Learn more ABOUT For over a decade we've built technology platforms and delivered services for customers ranging from US and European election campaigns to fast growing global brands. Find out more about our history and team here. More Info Contact us today to get started > Request direct DSP platform access >
- Contact | Emerse
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