Google announced that by the end of the year, Google will switch AdSense from the second-price to the first-price auction. Google expects this to have a neutral overall impact on AdSense publishers’ earnings. As a publisher, you don’t have to do anything – it will take care of itself.
According to Google, this change will “make it easier for shoppers to buy your ad space sold through AdSense”.
Why the change? Google said, “In the early days of online display advertising, ad space was 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 ads became sales platforms in the display ecosystem -Advertising, including Google Ad Manager and Google AdMob, have switched their auction to first price. In the case of a first price auction, the final price reflects the winning bid. In the coming months, AdSense will move to a first price auction. -Price auction. This helps advertisers by making the purchase of online ads, making it easier for them to buy your ad space sold through AdSense. “
This benefits the publishers by “optimizing the auction model for AdSense, Ad Manager and AdMob,” said Google. Google expects this to help advertisers trust the platforms more and increase advertiser confidence in the spend.
This affects AdSense for content pages, AdSense for videos, and AdSense for games, but not AdSense for search results pages or AdSense for shopping.
How will this affect your earnings? Google is unlikely to say that “on average, we expect the effect of moving to a first price auction to have an overall neutral impact on AdSense publisher revenue. When Ad Manager moved to a first price auction, there was a neutral to slightly positive effect on that Publisher earnings on average. “
I suspect Google will make more money from it, but they won’t admit that …
There is no question that this is helping Google make more money. The second prize meant the winner never paid too much, now they can. This is good for a capital G because the blog post is short and vague. If you want to explain something, you are thorough. In this case not.
– Darshan (@darshan) October 7, 2021
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