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How Index Exchange Switched to First-Price Auctions | eMarketer

Programmatic platforms are making big changes to how they price their ad auctions. And it’s arguable that no company more significantly overhauled its pricing structure than Index Exchange, a programmatic platform publishers use to sell their inventory.

Back in September, Index Exchange ran all of its header bidding integrations through second-price auctions, which is how programmatic auctions have historically operated. In a second-price auction, the second-highest bid determines the amount of money the auction winner will pay. Second-price auctioning was easier to navigate before header bidding came along and allowed multiple platforms to simultaneously bid on the same inventory. As header bidding became more popular, several programmatic platforms, including AppNexus, OpenX, Rubicon Project, PubMatic and Index Exchange, began testing first-price auctions.

Since September, Index Exchange has been incrementally moving its publisher clients over to first-price auctions, in which the highest bid determines what the winner pays. The company moved four publishers over, then eight, and so on, with all the publishers it works with moving to first-price by March, according to Will Doherty, Index Exchange’s vice president of business development.

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How Index Exchange Switched to First-Price Auctions – eMarketer.

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