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In this first of a two-part TraderTalk TV feature, ExchangeWire's head of content, Lindsay Rowntree, speaks with Amar Goel about auction dynamics and the difference nuances of first-price versus second-price auctions.

This episode covers:

- The development from the waterfall to an environment where everyone is bidding in parallel

- The differences between a first-price and a second-price auction

- The outcomes for both buyers and sellers, when moving to a first-price auction

- Where the buyer surplus is increased and the seller surplus shrinks

- Where the seller surplus is increased and the buyer surplus shrinks

- What this means for advertiser ROI versus publisher yield

- Buyer bidding strategies in first-price versus second-price

- Why moving to a first-price auction will increase buyer 'bid shading' and reduce publisher visibility and, conversely, why it will mean the DSP is making decisions with less information

- Who wins from a first-price auction

In the second episode, Goel will discuss how auction dynamics will evolve from here.