In Recent Events where Google have announced that they will move to First Price Auction Model from Second Price Auction Model.
The Model Where Buyer has to pay the amount they are bidding on, Which is considered good from a publisher point of views. However, there are some exceptions which are listed in the above article.
In Google Ad Exchange it’s called Unified Pricing Rules, and it rolled out on 6th May 2019. The new section is now added into the UI under Inventory Section >> Pricing Rules.
|Unified pricing rules open beta.All publishers can start setting up floor prices with the new unified ricing rules.|
|Late May||1% of your Ad Exchange traffic to be transitioned to a first-price auction, where the closing price is determined by the highest net bid in the auction. Only unified pricing rules will apply to this traffic.|
|Early June||Five percent (5%) of your Ad Exchange traffic to be transitioned to a first-price auction, where the closing price is determined by the highest net bid in the auction. Only unified pricing rules will apply to this traffic.|
|All of your Ad Exchange traffic (100%) will have transitioned to a first-price auction. Only unified pricing rules apply to this traffic going forward.|
On May 6th: Google has released the beta version of First Price Auction, It is present under Inventory section >> Pricing Rule
When unified pricing rules apply:
Unified Pricing rules will be applied as soon as you started creating the rules under Unified Pricing rules.
Please note that even though you create the Unified Rules, Only 1% of the inventory will enter into First Price Auction. Rest of the inventory will still have Second Price Auction applied on it. Higher floor price Rule will the inventory.
Open Auction pricing rules do not apply to this traffic.
Only 1% Of the total traffic will have First Price Auction Applied, Rest will go through old Pricing Model.
If there is overlapped between the inventory Targeted in Unified Pricing and Open Auction Pricing rules(Ad Exchange Rule).
Across all Ad Exchange, traffic, advertiser and buyer blocks from Open Auction pricing rules continue to be applied in the auction
Across all Ad Exchange traffic, branding blocks (anonymous/semi-transparent/branded) settings in Open Auction rules also continue to be applied.
House line items and the auction
ouse line items only serve when no remnant line items (Network, Bulk, Price Priority), Ad Exchange or Exchange Bidding demand are available to serve. That is, House line items are treated as if they have a $0 rate and do not compete on price via dynamic allocation.
5% percentage of your Ad Exchange traffic will start transitioning to the new auction dynamics, where the Ad Exchange closing price is determined by the highest net bid in the auction.
By late July, 100% of the Ad Exchange traffic will have been transitioned to the new auction dynamics described above.
All the Old rules will not effectively work and Publisher needs to migrate all the open auction rules into new unified Pricing Rules.
Open Auction pricing rules no longer apply to any percentage of Ad Exchange traffic, and only unified pricing rules will be employed.
Official Google Announcements: https://support.google.com/admanager/answer/9298211?hl=en&ref_topic=7506295