Improve Digital Offers First-Price Auction Option
www.exchangewire.com, 09.03.2018: Improve Digital opens a new option for clients. The platform now offers a choice between running either first- or second-price auction as part of the bid request, allowing more advanced trading and new monetisation opportunities.
Jan Willem Borsboom, VP enterprise solutions, Improve Digital, tells ExchangeWire that the first-price auction is a significant development for the industry. “Publishers will finally get a more realistic valuation of the true value of an impression and hidden margins will become impossible now that every additional cent will have to be transparent.”
According to Sebastiaan Moesman, CEO, Improve Digital, choosing between first- and second-price options will open up advertising budgets to embrace more programmatic trading: “A first-price auction scenario can give advertisers more confidence in a programmatic ecosystem in which the price is predictable and stable and content providers benefit from clear insight into what their inventory is worth.”
In other words, the first-price auction reflects the value of the inventory and, as such, also allows for a more transparent auction process when compared to second-price auction: with the highest bid winning in a first-price auction, any additional fees charged will be open and transparent. “This ‘you get what you pay for’ first-price auction model can provide a transparent, predictive, and more reliable marketplace”, Moesman hopes.