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Second-Price Auction

Winner pays $0.01 above second-highest bid. Legacy model, mostly deprecated.

Related Terms in Programmatic

DSP
Demand-Side Platform. Software for buying programmatic inventory. DV360, TTD, Amazon DSP.
SSP
Supply-Side Platform. Publisher tech for selling inventory. Google Ad Manager, Magnite.
DMP
Data Management Platform. Organizes audience data for targeting. Being replaced by CDPs.
CDP
Customer Data Platform. Unified customer database from all sources. Future of targeting.
RTB
Real-Time Bidding. Auction where each impression is bid on in milliseconds.
PMP
Private Marketplace. Invite-only programmatic auction with premium publishers.
Header Bidding
Simultaneous auction across exchanges before ad server. +20-40% publisher yield.
Bid Shading
Algorithm reducing first-price bids to estimated second-price. Saves 15-25%.

METRIX — Advertising Intelligence Platform