Moving AdSense to a first-price auction: Recent Updates

Creating great content takes time, but earning money from it shouldn’t. That’s why Google built AdSense to help you make money from your site with an easy-to-use advertising platform. AdSense simplifies advertising for you by automatically tailoring ads to your site’s layout, optimizing for mobile web and connecting you to millions of advertisers

With the aim of simplifying Adsense and its applications, Google plans on moving the AdSense (AdSense for Content, Video and Games) auction from second price to first price in the coming months. This update will make it easier for buyers to purchase your ad space sold on AdSense, but there is no action for you and you may or may not see a difference in your earnings. Google is making this announcement now to give advertiser partners time to prepare before Google changes how the AdSense auction works.

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Recent Updates:

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 ad selling platforms in the display advertising ecosystem, including Google Ad Manager and Google AdMob, switched their auction to first-price.

In a first-price auction, the final price reflects the winning bid. In the coming months, AdSense will move to a first-price auction. This will simplify how advertisers buy your ad space and make it easier for them to place bids.

Benefits for Publishers and Advertisers:

Google aims to streamline its ad platforms with the use of auctions, so that advertisers can rely on this method across AdSense, Ad Manager, and AdMob. Google believes that aligning their platform with other advertising options will help increase advertiser confidence in digital ads. Google also believes that as advertiser confidence increases over time, publishers will see an increase in revenue.

Prepare for Change

Google expects the transition to a first-price auction to be completed later this year. As we said above, you do not need to do anything, because these changes will update automatically.

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