Our Insights

Winner Winner, Chicken Dinner

March 13, 2019

“One dollar bid, now two, now two, will you give me two? Two dollar bid, now three, now three, will you give me three? Going once, going twice, sold”

No, we’re not auctioning off grandma’s porcelain figurine, but this is what programmatic display buying looks like these days. Starting in 2017, a few select exchanges rolled out first-price auctions and now, in 2019, first-price auctions have become the norm, instead of the exception with Google following suit this year.

Programmatic media has historically been bought using second-price auctions, meaning that the highest bidder will win, but only pays $0.01 higher than the second highest bidder for that impression. In first-price auctions, if you win the impression, you pay what you bid.

The move to a first-price auction has increased CPMs across the board for advertisers and has made programmatic buyers reassess their bid pricing and tactics. Bids must be high enough to win, but also low enough to drive efficient results at the individual impression level. This makes manual bidding more cumbersome and complicated.

Luckily for us (and for your campaigns), we can buy programmatic media through a Predictive Clearing Price AI technology. This technology analyzes historical clearing prices to find the most optimal bid in real time for each impression to drive the most efficient results and keep impression levels high. On average, we’ve seen 20% lower CPMs utilizing Predictive Clearing. That savings automatically gets reinvested in the media to drive up performance.

Pretty nifty, right!?

Tricia Janney