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Google First Price Auction

Will Google Ad Manager switching to First Price Auction affect Adsense Publ

     
11:37 am on May 19, 2019 (gmt 0)

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Will Google Ad Manager switching to First Price Auction affect Adsense Publishers?
If Yes, What are the changes or outcome expected?
4:09 am on May 20, 2019 (gmt 0)

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There are many speculaton but I dont know if it is applicable for Adsense. Publishers are going to see a short-term increase with their revenue. Header bidding might become obsolete. There are all sorts of speculations. As there is no particular date given yet for this model, we can just wait and see how things play out.
7:38 am on May 20, 2019 (gmt 0)

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First price auction will be completely implemented at the end of July.
I still doubt if First price auction applicable for Adwords and Adsense!?
9:53 am on May 20, 2019 (gmt 0)

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What is "first price auction" exactly? Is that when the winner of an auction, pays "effectively" the bid price he placed?
10:05 am on May 20, 2019 (gmt 0)

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Yes.
1:19 pm on May 20, 2019 (gmt 0)

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Niresh12495,

I could not find any document/article which says it will be implemented by end of july.Care to share the details related to that?
1:59 pm on May 20, 2019 (gmt 0)

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I guess it's hard to predict anything in the Internet eco system, any change, can produce anything :).
2:10 pm on May 20, 2019 (gmt 0)

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Will first price auction apply to standard g ads, or is it limited to adsence?
2:46 pm on May 20, 2019 (gmt 0)

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Right now it will be available for only Google Ad Manager Ads I think.
4:01 pm on May 20, 2019 (gmt 0)

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@yaashul here is the official post from Google.
[support.google.com...]

"Late July
All of your Ad Exchange traffic (100%) will have transitioned to a first-price auction. Only unified pricing rules apply to this traffic going forward."
1:35 pm on May 21, 2019 (gmt 0)

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I expect the move to first-price bidding will cause a surge in revenue and earnings for publishers. Then buyers will work out the value of ad space in this new regime and things will level out.

But unless I've missed something, the move to first-price only applies to AdX or whatever it's called now, not to Adsense. So unless you're using AdX or you're with someone who does (e.g. Ezoic or a GCP) then I wouldn't get my hopes up for a big August.
1:42 pm on May 21, 2019 (gmt 0)

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"surge in revenue and earnings" != "Adsense"
6:39 pm on May 21, 2019 (gmt 0)

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My guess is that it will make no difference in terms of our earning. :). It's more about setting a standard for the market participants aka media buyers, so that less logic / loop is wasted to save on resources and speed up ad serving.

For adsense specifically however, here is some official blog language: [blog.google...]

"Itís important to note that our move to a single unified first price auction only impacts display and video inventory sold via Ad Manager. This change will have no impact on auctions for ads on Google Search, AdSense for Search, YouTube, and other Google properties, and advertisers using Google Ads or Display & Video 360 do not need to take any action."

It's a good move by Google...since Adsense is generally a last fill (backup) when it comes to ad manager logic / setup. So they are still the biggest winner with this change.
3:18 am on May 22, 2019 (gmt 0)

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Marketers will need to adjust their initial bids upwards. This should, in theory, create a boost in earnings, though only if you are on the receiving end of this Ad Exchange inventory. But I expect the boost will be short-lived and it will all settle down again quickly. The market will soon determine what digital ads are worth and buyers will return to paying accordingly.
 

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