An Update on Transparent Auction Dynamics and First Price Auctions


March 13, 2019

At Telaria, our mission is to offer our publisher partners all of the tools required to drive the highest value for their supply and to ensure buyers have confidence that they have full transparency into the quality and efficiency of the supply chain. In the ever changing world of header bidding and parallel auction dynamics, it is important for us to continue to enhance the features we offer to our clients, while remaining 100% transparent.

We are excited to announce that we will offer even more control to our publishers around auction types in the second quarter. Today our publisher partners have the ability to price their auctions at first price or second price for invite-only auctions. In the second quarter, publishers will also be able to create first price auctions in open auction as well. As always, partners will have the right to control the type of auctions they deem appropriate for their yield and waterfall management.

In keeping with our industry-leading transparency and fraud-fighting assurances to buyers, this first-price auction is configured during deal setup, and the auction type is fully transparent to the buyer in the bid request. Our goal is to ensure that all auctions are clearly represented. While we believe a majority of transactions will remain second price auctions, we do think the changing auction dynamics and improved algorithms on the demand side in video will drive more first price auctions over time.

We continue firm in our belief that there should never be hidden fees at any point in an auction, as you may have seen in our fee transparency audit last year. We believe that the bidder’s algorithms will find the right and appropriate value of the inventory for that campaign and advertiser.

As the leading independent Video Management Platform, we only have our partners’ best interests in mind. We are not encumbered by competing content development or buy-side conflicts that have the potential to skew positions on auction dynamics. As the market evolves we look forward to continuing to share insights and best practices to help inform yield management and campaign decisions.

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