5 September 2023
Last modified: 15 March, 2022
A type of auction model in programmatic advertising, second-price auctions are where the highest bidder wins but only pays the price equal to the second-highest bid plus one cent. So if Buyer A bids 2.50 Euros and Buyer B bids 3 Euros, Buyer B would win but would only pay 2.51 Euros.
Second-price auctions benefit advertisers as they can bid the maximum they would be prepared to pay while still ensuring they don’t pay more than the actual market value.