Google will move AdSense for content, video, and games to a first-price auction model from a second-price auction model by the end of 2021, the company announced Thursday.
Bidders in the first-price auction model -- which actually reflects the winner’s bid -- participate simultaneously. The highest bidder wins.
A second-price auction model is where the buyer pays $0.01 more than the second-highest bid for an ad impression.
Google believes this change makes it easier for buyers to purchase ad space sold on AdSense. There is no action required. It will happen automatically.
Google Ad Manager and AdMob have already moved to a first-price auction. By streamlining the auction model across AdSense, Ad Manager, and AdMob, advertisers see consistency across Google’s ad selling platforms.
This move does not affect AdSense for Search, and AdSense for Shopping.
In a post detailing the change, the company said while it cannot predict how specific AdSense publishers will be impacted because of the dynamic auction environment, it could affect budgets.
On average, Google does not expect an impact to AdSense publishers' earnings overall from the move to a first-price auction.
When Ad Manager moved to a first-price auction, there was a neutral to slightly positive impact to publisher earnings on average.