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11 February 2025
Last modified: 14 March, 2022
Commonly used in programmatic media, auction-based pricing is a dynamic pricing model that ensures the prices paid for ad impressions are based on market demand.
Pricing can be based on the first-price auction model (where the highest bidder wins and pays exactly what they bid) or on the second-price auction model (where the highest bidder still wins, but what they pay is equal to the second-highest bid plus one cent).