{"id":2466,"date":"2019-11-12T11:30:07","date_gmt":"2019-11-12T11:30:07","guid":{"rendered":"http:\/\/adstargets.com\/blog\/?p=2466"},"modified":"2024-10-03T11:29:08","modified_gmt":"2024-10-03T10:29:08","slug":"ad-yield-in-google-adx","status":"publish","type":"post","link":"https:\/\/adstargets.com\/blog\/ad-yield-in-google-adx","title":{"rendered":"How to Improve Ad Yield in Google AdX and Increase Auction Pressure for Publisher"},"content":{"rendered":"\n

Most publishers aim for higher earnings from Google AdX. However, only a handful of them actually try or implement methods that lead to improved Ad yield in Google AdX and also increase their auction pressure.<\/p>\n\n\n\n

Auctions generally are designed in a way that the highest bidder is offered the product. In the real world of Ad bidding, the seller (publisher) usually sets the initial price while bidders (buyers) are allowed to bid for the product that is put up for sale. <\/p>\n\n\n\n

What comes next is buyers are given the opportunity to propose higher prices and, usually, the price at which the product is sold is higher than the real value of the inventory.<\/p>\n\n\n\n

In the case of programmatic advertising<\/a>, things are a bit different and the auctioning in the case of second-price auctions are organized differently.<\/p>\n\n\n\n

But to get things more clear here… Let’s first explain what Second price action is…<\/p>\n\n\n\n

In cases like this, bidders set the price that they are willing to pay for per CPM (1,000 impressions). However, they end up paying a different amount than their initial proposal and rather they are allowed to pay slightly higher than the second-highest bidder which in most cases they pay $0.01 more than the second-highest bidder. <\/p>\n\n\n\n

But still, the price they bid is rarely the exact amount they pay, since the winning bidder pays only $0.01 more than the second-highest bidder. Now, let me show how it works on numbers below. <\/p>\n\n\n\n

Here is an example showing 4 bidders bidding for Ad impressions <\/p>\n\n\n\n

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  1. Bidder A bids $1.5<\/li>\n\n\n\n
  2. Bidder B bids $2.5<\/li>\n\n\n\n
  3. Bidder C bids for $5<\/li>\n\n\n\n
  4. Bidder D bids for $4  <\/li>\n<\/ol>\n\n\n\n

    As you can see in the image, the winner has to pay only $4.01 even though he bids for $5. Using the second price auction system, the winner has to pay only an additional $0.01 in addition to the amount proposed by the second-highest bidder at the end of the bidding section.<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Regardless of the form of auction, publishers are constantly trying to increase their revenues, this is one of the reasons why Google Adx is created to help publishers by using either floor price optimization, or auction pressure increase. <\/p>\n\n\n\n

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