Soon Google AdSense will launch an auction based on the first-price model. According to the company, this will happen before the end of 2021.
The first-price auction model means that the advertiser with the highest bid wins the auction for an ad – and that’s what he has to pay.
Now Adsense uses a second-price auction model, in which the advertiser with the highest bid wins, but he must pay the second highest bid, that is, the price of the nearest competitor and a predetermined surcharge.
Google Ad Manager and AdMob have already switched to a first-price auction. Moving AdSense to this model, too, will create a unified purchasing process across all of Google’s platforms.
Publishers won’t have to do anything, the change will come into effect automatically and the move to a first-price auction will not affect the placement of ads on websites.
How will this affect AdSense earnings? On average, the company expects that the transition to the new auction type will have no impact on AdSense publishers’ revenue. When Ad Manager switched to the first-price auction, their revenue did not change or increased slightly.