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Source: https://blog.google/products/adsense/our-move-to-a-first-price-auction/
If you're into PPC as an advertiser this will likely greatly effect your budget and the effectiveness of your spend if you don't increase it. Meaning Google is poised to make even more money off of you by making you blind to what the auctions really look like.
Second-Price bidding is much like proxy bidding, where you can go in and bid $10, and if the 2nd highest bidder bids $5.00, your bid will be incremented up to the winning spot (but no higher than $10). As a simple example, your bid will be increased to $5.01 (a penny higher than the winning second-price). This keeps the auctions honest and lower in price.
First-Price bidding goes like this: you bid $10 and the 2nd highest bidder bids $5.00. You win, but you pay $10 instead.
Google's rationale in pretending it's not selfish is that it will help you better plan your spend and have a predictable expenditure that meets your budget. Meaning they want all of your budget, not just as much as the 2nd best bidder is willing to spend.
This is only for Adsense for Content, Video, and Games, not Adsense for Search or Shopping.
Inform yourself, your clients, and your stakeholders that Google has gotten one over on you again! But hey, at least now you can plan your spending more simply!
If the share of the bids for publishers decreases in response to the increased income, much like Amazon did during all the lockdowns, I'm going to "laugh".
If you're into PPC as an advertiser this will likely greatly effect your budget and the effectiveness of your spend if you don't increase it. Meaning Google is poised to make even more money off of you by making you blind to what the auctions really look like.
Second-Price bidding is much like proxy bidding, where you can go in and bid $10, and if the 2nd highest bidder bids $5.00, your bid will be incremented up to the winning spot (but no higher than $10). As a simple example, your bid will be increased to $5.01 (a penny higher than the winning second-price). This keeps the auctions honest and lower in price.
First-Price bidding goes like this: you bid $10 and the 2nd highest bidder bids $5.00. You win, but you pay $10 instead.
Google's rationale in pretending it's not selfish is that it will help you better plan your spend and have a predictable expenditure that meets your budget. Meaning they want all of your budget, not just as much as the 2nd best bidder is willing to spend.
This is only for Adsense for Content, Video, and Games, not Adsense for Search or Shopping.
Inform yourself, your clients, and your stakeholders that Google has gotten one over on you again! But hey, at least now you can plan your spending more simply!
If the share of the bids for publishers decreases in response to the increased income, much like Amazon did during all the lockdowns, I'm going to "laugh".