The digital advertising landscape has evolved since 2019, shifting from second-price to first-price auctions. In the traditional second-price model, using multiple retargeting partners risked bid collision, driving costs higher without benefits. The first-price model allows the highest bidder to pay exactly what they bid, removing this inefficiency. Marketers can now utilize various independent strategies concurrently, as their bids do not compete against one another. Success in this model relies on ensuring that targeting methods employed by partners are different in kind, which can lead to significant performance advantages.
Since 2019, the digital ad ecosystem has been playing by new rules, most notably with first-price auctions, where the highest bid wins and pays exactly what was offered.
The shift to first-price auctions has eliminated the risk of bid collision and allowed marketers to use multiple independent strategies without cost inefficiency.
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