First Price auctions for Google Ad Manager is here

In today's era when the programmatic ecosystem has evolved into a complex marketplace where a single ad can pass through a mix of auctions, with different rules, before a winning bid price is selected and an ad is served which makes difficult for advertisers and agencies to properly value programmatic inventory and ends up publishers and app developers to implement increasingly complicated ad monetization strategies which reduces the transparency across the industry.


Google current Auction model

In a bid to simplify programmatic and transparent market for its partners, Google will start to transition publisher inventory to a unified first price auction for Google Ad Manager by end of this year, this will help reduce complexity and create a fair and transparent market specifically concerning ad sales for display and video inventory products.

With this change, Google will simplify the auction in Ad Manager, every offer from programmatic buyers will compete in the same unified auction, alongside inventory which is directly negotiated with advertisers. An advertising buyer’s bid will not be shared with another buyer before the auction or be able to set the price for another buyer.

Before this changes rolls out, publishers and app developers will need to rethink how they use price floors and technology partners will need to adjust how they bid for Google Ad Manager Inventory.

This change will have no impact on auctions for ads on Google Search, AdSense for Search, YouTube, and other Google properties, and advertisers using Google Ads or Display & Video 360 do not need to take any action.

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