How bids are set

First-price auction

The winner pays the price it bid. Nearly every exchange works this way now. It replaced second-price auctions, where the winner paid the runner-up's bid.

Where you'll see it on Ad Spot FinderDSPs & ad exchanges

Related terms

Manual biddingYou set the bid yourself for each keyword, audience or ad spot.
Automated biddingThe platform sets each bid for you to reach the goal you choose, within your budget.
Target CPAAn automated bidding strategy that aims to keep your average cost per acquisition at the amount you set.
Target ROASAn automated bidding strategy that aims for the return on ad spend you set, such as $4 back for every $1 spent.
Bid floorThe lowest bid a publisher accepts, like Reddit's $3.50 CPM. It sets the minimum on programmatic options.

All glossary terms