AdSense is moving to a first-price auction (2024)

October 7, 2021

In our continued effort to simplify AdSense, we will be moving the AdSense (AdSense for Content, Video, and Games) auction from second-price to first-price in the coming months. This change will make it easier for buyers to purchase your ad space sold on AdSense. There is no action for you and you will likely not see a change in your earnings. We’re making this announcement now to help our advertiser partners prepare before we change how the AdSense auction works.

Benefits to publishers and advertisers

By streamlining the auction model across AdSense, Ad Manager and AdMob, we are aligning our process with other ad selling platforms in the display advertising ecosystem. We believe this will help grow advertiser spending confidence in digital advertising and an increase in spending confidence over time will benefit publishers.

Preparing for the change

We expect the transition to a first-price auction to be completed later this year. You do not need to do anything, these changes will update automatically.

For more information and future updates, check out our AdSense first-price auction FAQs.

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AdSense is moving to a first-price auction (2024)

FAQs

AdSense is moving to a first-price auction? ›

In a first-price auction, the final price reflects the winning bid. AdSense is moving 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.

Why did Google move to the first-price auction? ›

By switching to a first price auction, Google is helping to reduce this complexity and creating a fairer and more transparent market for everyone. With this change, all prices from buyers will compete in a single unified auction and the buyer that wins the auction will pay the price they bid.

Is Google still a second-price auction? ›

Second-price auctions have long been the industry norm in programmatic advertising. Now in a big move, Google has announced that its Ad Manager suite of products will be transitioning to the first-price auction model by the end of this year.

How does AdSense auction work? ›

How the ad auction works. Just like in a traditional auction, the more advertisers that bid to appear on your ad space, the higher the competition is for your ad units, and the more you can earn.

What is the difference between first-price auction and second-price auction? ›

— First-Price Auction: Digital buying model where if your bid wins, you pay exactly what you bid. This maximizes revenue potential for the seller. — Second-Price Auction: Digital buying model where if your bid wins, you pay $0.01 above the second highest bid in the auction.

What is the first-price auction? ›

A first-price sealed-bid auction (FPSBA) is a common type of auction. It is also known as blind auction. In this type of auction, all bidders simultaneously submit sealed bids so that no bidder knows the bid of any other participant. The highest bidder pays the price that was submitted.

Why did Google use Dutch auction? ›

One of the reasons that Google had choose this way of setting up their IPO, as opposed to the traditional way, which consists of investment bankers working with money managers to set up a price, was because Google believed that the Dutch Auction would be beneficial to the company was because they believed that this ...

What are the disadvantages of a second-price auction? ›

Advantages: Simple and intuitive; participants pay what they're willing to bid. Disadvantages: Bidders might strategically submit lower bids than their true valuation, leading to inefficient pricing; the winner might pay more than the actual value they placed on the item.

Why is a second-price auction better? ›

A second-price auction reduces the risk of overspending which can lower the demand for a publisher's inventory. A second-price auction eliminates the risk overestimation of the value of the impression. Since buyers don't overspend, there is a higher demand for the publisher's inventory.

How do you win a second-price auction? ›

In a second-price sealed bid auction, each bidder submits a sealed bid to the seller. The high bidder wins and pays the second-highest bid for the good. The second-price auction is a special case of a Vickrey auction.

How to earn $100 per day from AdSense? ›

Let's assume that a Page View = An Ad Impression. To make $100 every day you need 40,000 Page Views/day Or, 400 Clicks a day @ 1% CTR and $0.25 CPC. For 40,000 Page Views you have to produce 500 awesome articles on your website. These pages must attract at least 80 or more page views every day.

How much does AdSense pay per 1000 views? ›

How Much Does Adsense Pay Per 1,000 Views? Adsense pays $10-20 for 1,000 views on average. The total earnings depend on the website category, the type of content you provide, the amount of website traffic, where users are located and how ads are set up.

What is the $100 threshold for AdSense? ›

What is the AdSense payment threshold for my account? Each country has its own payment threshold. For the United States, you need to accrue $100 in AdSense earnings to meet the threshold and get paid. Here is more information regarding other countries.

What is meant by the second price auction used by Google? ›

each interested buyer submit his or her bid for the item. the buyer with the highest bid wins the auction. finally, the winner pays price equal to the second highest bid.

What was the first Internet auction site? ›

The first online auction site was Onsale, founded by Jerry Kaplan in May 1995. In September that same year, eBay was founded by French-Iranian computer scientist Pierre Omidyar.

When did Google introduce automated bidding? ›

Google Ads introduced Smart Bidding strategies back in 2016, building on previous automated bidding options announced as early as mid-2010. Over the past two years, Smart Bidding has continued to expand and grow more powerful.

What was the first auction website? ›

eBay was founded by computer programmer Pierre Omidyar in 1995 as a part of his website and became the first online auction. You have probably heard this funny story that the first thing that was sold on eBay was a broken laser pointer for $14.83.

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