Originally posted on Exchangewire.com.
With the rise in popularity of header bidding as a mechanism for publishers looking to increase yield, AppNexus’ SVP of publisher strategy, Tom Shields, outlines his thoughts on this potential shift for the industry.
Auction dynamics are not exactly cocktail party conversation (unless you are at an AppNexus Summit), but they are critically important to how economic systems like RTB advertising work. RTB has historically worked on a second-price auctionmodel, explained clearly here. As RTB has matured, however, some of the assumptions behind the model have started to break down, and both buyers and sellers are seeing unexpected results. The rapid rise of header bidding is exacerbating some of these challenges.
Read the full article on Exchangewire.com
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