Google's First Price Action Model: In a continued effort to simplify AdSense, Google will be moving the AdSense (AdSense for Content, Video, and Games) auction from second-price to first-price in the upcoming months. This change will make it easier for buyers to purchase your ad space sold on AdSense. There is no action for you (publishers) and you will likely not see a change in your earnings. Google made this announcement to help our advertiser partners prepare before change how the AdSense auction works.
What Will Be Benefits To Publishers And Advertisers?
By streamlining the auction model across AdSense, Ad Manager, and AdMob, Google is planning for aligning its process with other ad selling platforms in the display advertising ecosystem. This will help grow advertiser spending confidence in digital advertising and an increase in spending confidence over time will benefit publishers.
When Will We See The Changes?
Google expects the transition to a first-price auction to be completed later this year.
What Publishers Need To Do?
Publishers do not need to do anything, These changes will update automatically.
FAQs About AdSense Moving To A First-Price Auction
Here are some answers to questions (FAQ) you may have about AdSense moving to a first-price auction:
Why Is AdSense Moving To A First-Price Auction?
On Google's display ad selling platforms, its first-price auction simplifies the buying activity for advertisers because the final price reflects the winner’s bid. Google Ad Manager and Google AdMob have already moved to a first-price auction, and by streamlining the auction model across AdSense, Ad Manager, and AdMob, advertisers benefit from a consistent process across Google’s ad selling platforms. This helps to grow advertiser spending confidence across the display advertising ecosystem and an increase in spending confidence over time will benefit publishers.
Why is Google AdSense Making This Change Now?
In the early days of online display advertising, ad space was typically sold to advertisers in a second-price auction, where the final price paid by the winner was determined by the amount of the second-highest bid. Over time, many ad selling platforms in the display advertising ecosystem, including Ad Manager, AdMob, and many third-party ad exchanges, switched their auctions to first-price.
In a first-price auction, the final price reflects the winning bid. In the coming months, AdSense will move to a first-price auction. This will help advertisers by simplifying how they buy online ads and make it easier for them to buy your ad space sold on AdSense.
Which AdSense products are affected?
The move to a first-price auction only affects the following AdSense products:
- AdSense for Content,
- AdSense for Video,
- AdSense for Games.
This move does not affect:
- AdSense for Search,
- AdSense for Shopping.
Do You need To Take Any Action?
No. You do not need to do anything, these changes will update automatically.
Do You Need To Change My Ad Implementation?
No. The move to a first-price auction will not impact your ad implementation.
Will You Still Be Able To Leverage All Ad Formats In The New Auction?
Yes. This change does not affect the ad formats that AdSense offers.
Will Your AdSense Earnings Be Impacted?
Due to the dynamic auction environment, it can not be predicted how specific AdSense publishers will be impacted. But, on average we expect the impact on AdSense publishers' earnings overall from the move to a first-price auction to be neutral. When Ad Manager moved to a first-price auction, there was a neutral to a slightly positive impact on publisher earnings on average.
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