{"id":20838,"date":"2019-12-05T12:39:40","date_gmt":"2019-12-05T11:39:40","guid":{"rendered":"https:\/\/yieldbird.com\/?p=20838"},"modified":"2024-07-22T19:27:13","modified_gmt":"2024-07-22T17:27:13","slug":"header-bidding-in-the-era-of-first-price-auction","status":"publish","type":"post","link":"https:\/\/yieldbird.com\/research-hub\/header-bidding-in-the-era-of-first-price-auction\/","title":{"rendered":"Header Bidding in the Era of First-Price Auction"},"content":{"rendered":"\n

After Google announced its decision to move Ad Manager\u2019s non-guarantee inventory to the model of First-Price Auction, the entire programmatic industry began speculating on the potential repercussions<\/a><\/strong> of this decision. <\/p>\n\n\n\n

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Apart from the need for changes in Price Management Strategy and protection from Bid Shading, one expectation related to the decreasing importance of Header Bidding for Publisher monetization setups: this was due to the lack of auction pressure it used to have on ADx in the Second-Price model, which has now been taken from it with the establishment of the Unified Pricing Rules<\/a><\/strong>. <\/p>\n<\/div><\/div>\n\n\n\n

In this article, we have looked to share our observations on the first two months of the Header Bidding situation in the light of the First-Price auction reality and to assess whether fears of its imminent demise were at all justified. <\/p>\n\n\n\n

Performance of Header Bidding in the First-Price ecosystem<\/strong><\/h2>\n\n\n\n
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Rates<\/strong><\/h3>\n\n\n\n
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The above chart shows an increase in the eCPM index (price for 1000 impressions) in the period preceding the entry of First Price. The auction in the first price model was introduced gradually from the beginning of September and on 26.09 it reached its maximum level, i.e. a virtually 100% inventory was covered by the First Price model. Rates increased from EUR 0.6 eCPM to over EUR 0.7 eCPM, which translated to 14%. <\/p>\n\n\n\n

The data used for the above analysis is derived from four different GAM accounts from different regions of the world, and in these accounts, many websites are monetized.<\/p>\n\n\n\n

The increase in the eCPM indicator<\/a><\/strong> in Header Bidding may be due to two factors: <\/p>\n\n\n\n