WTF is Bid Shading

Digiday
Digiday
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Published 2019-05-23
The programmatic auction is undergoing a big change to a first-price model where, like in a real-life auction, advertisers are asked to pay however much they bid. But advertisers are wary that this change will lead to them paying more per ad. To keep prices in check, ad tech firms have adopted a method called bid shading that is meant to save advertisers money. However now advertisers are getting worried there’s a shady side to bid shading.

Here, Digiday's Tim Peterson explains how the auction model has evolved, and both the good and bad sides of it's newest development: bid shading.

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